Builders de­faulted on dues


HT Estates - - FRONT PAGE -

The al­lot­ment scheme: In 2006, Noida Au­thor­ity had in­tro­duced a scheme in which a builder had to pay only 10% of the land cost at the time of al­lot­ment and the re­main­ing 90% in in­stall­ments. As projects neared com­ple­tion, builders were un­able to pay land dues due to which home­buy­ers were un­able to get their flats reg­is­tered Thou­sands still await­ing pos­ses­sion: As of date, builders of 127 res­i­den­tial projects in Noida to­gether need to pay ₹ 7,200 crore in land dues with­out the in­ter­est. In Noida, 50,000 buy­ers have been un­able to get reg­is­tra­tion of flats done due to the fail­ure of builders in pay­ing land dues The so­lu­tion: Un­der pres­sure from home­buy­ers, the Noida Au­thor­ity has worked out a scheme in which it has asked builders with pend­ing land dues to pay 10% to 15% of the amount due till April 30 and the re­main­ing in small in­stall­ments The way for­ward: Ex­perts sug­gest that if a com­ple­tion cer­tifi­cate can­not be handed over to the de­vel­oper be­cause of non-pay­ment of dues, the au­thor­ity con­cerned should mort­gage his un­sold stock and is­sue a com­ple­tion cer­tifi­cate so that peo­ple can take pos­ses­sion Banks can refuse loans: Most projects that do not re­ceive a com­ple­tion cer­tifi­cate due to some vi­o­la­tions by builders, are of­ten not fi­nanced by banks. Buy­ers want­ing to in­vest in th­ese projects might not get fi­nanced by lenders

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