Noida information: Representatives of realtors’ our bodies CREDAI and NAREDCO met Ritu Maheshwari, the CEO of Noida and Greater Noida growth authorities and demanded a one-time settlement scheme to clear their land dues citing liquidity crunch.
Last month, the Supreme Court recalled its order of June 10, 2020, which had capped the speed of curiosity at 8 per cent on the dues for land given on lease to totally different builders. The apex courtroom order is a setback for builders of Noida and Greater Noida in Uttar Pradesh (UP).
“In a meeting with the CEO of Noida and Greater Noida Authorities Ritu Maheshwari yesterday, real estate developers from NAREDCO and CREDAI urged the Authorities to bring in One Time Settlement (OTS) Scheme similar to the one adopted by the Haryana Government, to tide over the situation arising from the recent order of the Supreme Court,” the affiliation mentioned in an announcement.
After the recall of the Supreme Court orders, the land fee legal responsibility on builders has elevated manifold. The builders have began getting demand letters of big quantities because of calculating curiosity compounded each six months, from the authorities, it added.
“With the acute liquidity crisis the developers are finding it impossible to clear the demands and there is an apprehension of cancellation of allotment of plots unless payments are made as per the demands,” the assertion mentioned.
NAREDCO-Uttar Pradesh President RK Arora mentioned the builders have been in a position to persuade the authorities that within the absence of an efficient decision to the issue, possession of flats to about 1.5 lakh residence patrons, a big quantity of land dues of the authorities and funding of numerous banks and monetary establishments all are at stake.
“More and more developer companies are being placed under CIRP (Corporate Insolvency Resolution Professional) by the NCLAT by which the home buyers would not get their flats and the land payments due to the authority would become Zero as the authorities would be treated as an operational creditor,” he mentioned.
Therefore, Arora mentioned it’s within the curiosity of all stakeholders that the authorities settle with the builders to maintain the initiatives occurring and provides supply of flats to residence patrons whereas recovering the authorities’ dues in installments as per OTS. The associations additionally submitted representations suggesting proposals for a decision package deal within the form of OTS.
National Real Estate Development Council (NAREDCO), was established as an autonomous self-regulatory physique in 1998 beneath the aegis of the Ministry of Urban Affairs, Government of India. In the illustration, NAREDCO’s Uttar Pradesh has identified that the true property sector has been ailing for a while because of unprecedented developments like keep orders from varied courts, NGT and lockdown because of COVID-19.
“As a result of the same, payment of land premium due to Noida and Greater Noida authorities from developers have since tripled taking into account the land premium, interest and penal interest apart from other demands like lease rent, farmer compensation etc,” Arora mentioned within the letter.
(With PTI inputs)
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