Govt denies favoring real estate developers in NOIDA tussle

Govt denies favoring real estate developers in NOIDA tussle
01/10/2018 , by , in News/Views

The Union urban development ministry today countered allegations that the government was trying to extend favors to real estate developers in NOIDA in the name of helping flat-buyers.

The NOIDA and Greater NOIDA areas adjoining Delhi have seen many developers run into severe financial difficulties after the government cracked down on the use of illicit funds in the real estate sector.

Moreover, the setting up of the Real Estate Regulation Authority (RERA) to prevent malpractices in the sector also hurt unscrupulous real estate players, especially in the National Capital Region.

As a result of the double whammy, many builders have frozen their ongoing development projects, leaving their customers — who have paid millions of rupees as booking amounts — stranded.

The flat-buyers have been conducting agitations demanding that the builders should either return their money or deliver their flats.

It was in this context that the government of Uttar Pradesh set up a committee to suggest a way out of the imbroglio.

The committee suggested that the government should nudge banks to provide capital to real estate developers. It also suggested that state-owned construction firm NBCC should take up a “few selected viable projects” and “complete the same” if the developers are not able to do so.

Many people, said the ministry, are portraying the recommendations as favors being done to real estate developers.

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