Akhilesh steps in, tells Noida authority to help flat buyers
DELAYED UP chief minister directs authority to resolve occupation certificates issue
NOIDA: Noida authority chief executive officer Rama Raman on Monday met his team over 70,000 home owners being unable to register their flats as builders failed to pay dues.
The move came after Uttar Pradesh chief minister Akhilesh Yadav intervened following buyers’ protest campaign on microblogging site Twitter.
Builders are unable to pay around `300 crore land dues to be eligible for getting occupation certificates, said officials. Without an occupation certificate, mandatory before getting possession of a flat, buyers cannot carry out the registration to transfer ownership from the builder to their name.
“We are trying to find a viable solution,” said Rama Raman.
Builders failed to pay dues to the Noida authority that allotted land for residential projects from 2006 to 2009. The buyers have been suffering for the last five years.
“The chief minister is very serious about addressing the issues of home buyers. That is the reason he has issued instructions to the Noida authority and other officials concerned,” said Navneet Sehgal, principal secretary, UP information department.
If builders fail to raise funds to pay land dues to the authority, the issue will not be confined to these 50,000-70000 property buyers only. It will affect others too.
According to the authority, there are a total of 127 under construction residential projects in Noida. Of these, 86 projects have not got occupation certificates till April 18, 2016. Twenty-four residential projects are those in which 50,000-70,000 buyers are already suffering. Around another 80,000 buyers will face issues once they get ready for the registration.
Builders of these 127 projects together need to pay `7,200 crore land dues to the authority. Builders failing to raise funds due to poor sales in the last 2-3 years said the authority should not levy interest on the default amount.
“If the Noida authority wants to benefit these 50,00070,000 home buyers, who want to get registry done immediately then it should recover land dues in small instalments,” said Manoj Rai, chairman of Gardenia Group that has `100 crore dues to pay. The Gardenai Group in has allowed possession to 1300 buyers in its sector 46 project without an occupation certificate.
Anil Kumar Sharma, CMD of Amrapali Group, said, “The Noida authority should come up with an amnesty scheme because there is an economic slowdown going on. The authority can mortgage unsold flats in lieu of money in a particular building to offer occupation.”