Setback for 17 Greater Noida housing projects

Building plans of 17 projects from six builders have been cancelled by the governing authority in the Greater Noida area.

Jaypee Infratech, Gaursons, Orris Group, VGA Developers and Ajnara Group are all affected. The Yamuna Expressway Industrial Development Authority (YEIDA) had approved the layout plan but its planning department had raised some objections in the building plans of these projects, said sources. Since new building plans had not been given for approval, the Authority cancelled those for these 17 projects.

Sector experts say 105 projects of 45 developers have stalled in the Greater Noida area over the past seven years, with at least 5,000 home buyers caught in between and petitioning the courts. “Of the 17 projects which have been cancelled, the sale of properties in some had already happened. This would leave these buyers in the lurch. A solution should be provided,” said Parveen Jain, president of the National Real Estate Development Council, which represents realtors.

Some, however, say this decision by YEIDA was needed and would have a positive impact in the longer run. And, prepare the sectors and its consumers for the strict measures that would be in place once the Real Estate Regulation & Development (Rera) Act of 2016 is enforced. “These projects got cancelled as they did not get the requisite approvals. This shows how strict the authorities are becoming about all these things, a preamble to Rera implementation. These moves will help in getting customer confidence back. After Rera kicks in, such projects would not be allowed,” said Samantak Das, chief economist at Knight Frank India. YEIDA says it has told the Jaypee group to pay the total dues of ~600 crore by August for the 1,000 hectares allotted to it. “We have given one month to Jaypee, till May 15, to pay 15 per cent, which is ~90 crore. We have directed them to clear the remaining amount by August-end,” Arun Vir Singh, the Authority’s chief executive, told journalists.

Earlier, YEIDA had asked Jaypee to pay 15 per cent of the ~600 crore by April 15. The group had paid only ~10 crore of the ~90 crore to YEIDA and sought four months for the total dues.