Over 5,000 homebuyers may benefit as Noida allows co-developers in stalled projects
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The Noida Authority has approved the introduction of co-developers in five stalled projects, a move that will benefit more than 5,000 customers who have been waiting to get possession of their new homes.A senior official said approval for co-developers to join the stalled projects is on the condition that legal cases against the Authority are withdrawn and 25% of the outstanding dues are paid.The Authority has also approved a proposal by real estate developer Apex Group to revive 16 projects of debt-ridden builder Supertech.'These are cases where we had received applications from builders wanting to take over projects. But cases are also ongoing in court. We have clarified our stance in such situations: if the case against the Authority is withdrawn and 25% of dues are paid, we will approve the introduction of a co-developer,' said the Noida Authority official.In the Supertech case, the new developer has agreed to clear Rs 678 crore in dues to five banks and around Rs 1,900 crore to the Noida, Greater Noida and Yamuna Expressway authorities.A co-developer can take over a legacy stalled project under the policy formulated by the Amitabh Kant Committee and sanctioned by the Uttar Pradesh government.Earlier, Nimbus Projects Ltd , a listed NCR-based real estate firm, had received approval to revive a stalled housing project in Sector 168, Noida.The first project under the policy is being executed by the Hawelia Group, which has taken over a 22-acre, partially delivered project—ShreeRadha Sky Garden—in Greater Noida.According to the Confederation of Real Estate Developers' Associations of India (CREDAI), 190,000 units worth Rs 1 lakh crore are stuck in Noida, Greater Noida and Ghaziabad. In Greater Noida alone, at least 36 real estate projects are undergoing insolvency proceedings.It is estimated that Rs 40,000 crore is owed to the Noida, Greater Noida, and Yamuna Expressway authorities, including principal, interest and penal charges for allotted plots where real estate projects are at various stages of execution.Under the co-development policy, the new developer can raise debt for financial closure of such projects based on its own net worth and credit rating. The earlier promoters, already in default, do not have the required credit standing to raise funds to complete these stalled projects.
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