In a significant development, it has come to light that developers of approximately 30 commercial projects in Noida collectively owe the Noida Authority a staggering sum of over Rs 8,000 crore. Despite some developers staying current on their dues until 2020, the flow of payments to the Authority has drastically reduced over the past three years, leaving a substantial outstanding amount.
Noida Authority CEO, Lokesh M, convened a crucial meeting on Thursday with representatives from these commercial projects to delve into the reasons behind the payment delays. During the session, attended by eight developers, discussions revolved around various obstacles hindering the clearance of dues, including issues concerning time extensions and zero periods.
A concerning revelation surfaced during the meeting, indicating that five of the 30 builders collectively hold liabilities amounting to approximately Rs 6,000 crore, while the remaining projects have outstanding amounts averaging around Rs 100 crore each.
In a proactive move to address the situation, it was decided that developers would be summoned to the Authority's offices in groups, allowing them to articulate their specific challenges directly to concerned officials. This approach aims to foster dialogue and facilitate the exploration of mutually beneficial solutions.
An official statement emphasized the Authority's commitment to actively engage with developers to resolve outstanding payment issues. "The Authority will listen to them about their problems and try to solve them. Subsequently, they were asked to pay their dues," stated the official.
Furthermore, it was revealed that a proposal for the resolution of commercial properties had been initiated several months ago. However, the commercial department's oversight in failing to establish escrow accounts for developers and the lack of focused action were identified as contributing factors to the prevailing situation. Nonetheless, steps are being taken to rectify these shortcomings, with plans underway to address Sports City projects, which have been excluded from previous efforts.
The Sports City scheme, encompassing over 300 hectares across four locations in Noida, was conceived with the objective of developing international-level sports facilities alongside residential and commercial components. However, many developers
deviated from the prescribed guidelines, leaving over 30,000 homebuyers entangled in the aftermath.
As efforts intensify to redress the financial discrepancies and revive stalled projects, stakeholders are hopeful for a collaborative and expedited resolution to alleviate the burden on both developers and homebuyers alike.
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