Noida Authorities to waive off interest on outstanding land dues to builders for litigation period
The Noida and Greater Noida authorities have decided to give an interest waiver on the outstanding land dues to builders whose housing projects got delayed due to land disputes. The interest waiver was approved by the three-minister committee appointed by Uttar Pradesh state government. The committee includes industries minister Satish Mahana, urban development minister Suresh Khanna and minister for state for sugar cane and industry Suresh Rana approved the waiver.
Builders were demanding an interest waiver for the period when construction was disrupted due to land disputes between the government and farmers whose land was acquired for development and realty projects. In Noida, there are around 10 big housing projects for which interest waiver for the period has been sought. The realtors alleged that they failed to get possession of the land on time due to ongoing cases.
Many builders failed to finish their housing projects as per the scheduled deadline because farmers had challenged the land acquisition by the respective authorities and filed pleas in the Allahabad high court and the Supreme Court. The builders were alloted group housing land against payment to be made in instalments. If they defaulted on payment, they had to pay 11%-14% interest on land dues. The builders argued that since their realty projects got affected due to the land dispute between the government and the farmers, the interest must be waived off. In comparison to Noida, many more projects in Greater Noida were stuck due to litigation. Around 30 builders are claiming interest waiver on the basis that their work was disrupted.
Builders said that if the interest waiver is given, it will help them resolve issues related to flat delivery.