In order to revive stagnant projects in Greater Noida, The Yamuna Expressway Industrial Development Authority (YEIDA) has announced two policies. These policies can be used by construction companies until 31 August. The decision to propose a restoration and reschedulement policies was taken at a meeting of YEIDA’s Board of Directors on 28 June.
According to the deferral or reshedulement policy, the developer must pay 5% of the amount owed in advance. Once the revised payment plan is established, the developer must pay an additional 5% of the amount due to YEIDA. To restore the canceled land or plot, the developer must pay 10% of the current land premium to the authority.
According to YEIDA officials, all payments must be made till August 31. The applications asking for restoration of land will be discussed at the next board meeting.
For the past four year the developers who took YEIDA’s land to build skyscrapers owed about Rs 4,000 crore to authorities. There are currently 10 public and municipal housing projects in various construction stages in addition to the Jaypee Sports City project near the expressway region. About 16,000 buyers have invested in these projects and are waiting to receive possession. While 12,000 housing units were placed in 10 housing projects. About 5,000 units were offered under the Jaypee Sports City project.
Policies at a glance
Reschedulement Policy– This policy states-
- Developers must pay 5% of the amount owed in advance. The remaining 5% will be paid within 30 days of the proposed revised payment schedule.
- In case of non-compliance with three installments after taking reschedulement, the lease will be canceled.
Restoration Policy- This policy states-
- Restoration charges at the rate of 10% of the prevailing plot premium to be paid. The transfer of the plot is not allowed until the winning bidder receives a proof of completion.
- The request for restoration of the plot will be sent before the next board meeting for decision after the payment is made.
- Applications must be submitted by August 31st.
Projects don’t have basic amenities-
RK Arora, Uttar Pradesh president of realtor’s body, Naredco, said, Shortly after the filing of the Gajraj case in October 2011, where it was decided that farmers should be paid a compensation of 64.7%. About 700 landowners who had to manage their land in the Yamuna highway area moved to various courts and forums. YEIDA was unable to provide land to developers for four to five years.
For some projects, connections to basic services such as sewerage or electricity were not provided on time.
YEIDA has consistently requested a land premium along with interest. We have asked the UP government to give developers zero-period benefits so that they are exempt from paying interest during the period when they could not take over the land that was provided to them.
No estimate of sold lands-
Arun Vir Singh YEIDA chief executive officer said, Construction companies and Developers must pay a certain amount in advance. We process requests as soon as we receive the minimum amount, and then issue a revised payment schedule for them.
From August 2012, shortly after the commissioning of the 165-kilometer expressway. Private developers began implementing projects in the Greater Noida and Dankaura districts. Between June 2010 and March 2015, 31 developers, including the Jaypee Group, purchased land from YEIDA to build skyscrapers along the road.
But later, many builders left their land or lost it because they were unable to clear dues. The Jaypee Group could also benefit from the restoration policy. Another three developers who have lost their project due to non-payment of fees are also eligible to participate. But payment must be made by August 31st. YEIDA does not currently have an estimate of the number of apartments sold by the three developers.