Noida tweaks rules for faster flat delivery
Real Estate projects in Noida will be given partial completion certificates for three months, from September 1 to November 30 this year, to hasten delivery of long overdue flats that are stuck because cash-strapped developers can’t clear all their dues to get full completion certificates.
The latest formula, devised after a series of meetings the Noida administration had with real estate companies, makes a developer eligible for temporary completion certificates even if it has only paid 10% of the total land cost for a project to the Noida Authority.
Explaining this, Noida CEO Amit Mohan Prasad said on Thursday Prasad said if a developer (who has paid 10% of the land cost) applies for completion certificates for, say, 10 towers in a project, temporary completion certificates will be given to half the number, which is five towers. “So, if a builder owes Noida Authority Rs 100 crore, it will have to pay 10% (Rs 10 crore) to obtain temporary completion certificates. This will be given for 5 out of 10 towers.” But at the time of registry of flats, the builder has to pay another 65% of the land cost.
“This 65% (let’s say Rs 65 crore) will be divided by the number of flats in the 5 towers that have received temporary completion certificates,” Prasad said. “If the 5 towers house 400 flats, it will be Rs 65 crore divided by 400 flats, which is Rs 16.25 lakh per flat. This amount will be collected at the time of sub-leasing and registering the property. After that, buyers will be able to take possession of their homes.”
Noida expects the policy, which was welcomed by relators’ association Credai, to speed up handover of flats to buyers in around 40 residential projects that are either nearly complete or whose first phase is ready.
According to officials, this decision came following recent meetings with 36 builders. “We have 76 ongoing projects in our area,” Prasad said.
“Realtors owe us nearly Rs 11,000 crore. One of the reasons for the delay in handing over possession to homebuyers is the dues we need to recover from builders. A condition of allowing a registry is that the builder obtains a no-dues certificate from us. With this new formula for issuing completion certificates, we hope to clear this builder-buyer logjam and start handing over homes to thousands of homebuyers,” he added.
On the status of the 76 projects, Prasad said, “We have received applications for completion certificates from 39 projects. Sixteen were rejected by us last month for not having all facilities in place. Twentythree are being examined. We will ensure all requirements for obtaining completion certificates are fulfilled.” Credai national president Getamber Anand said realtors were grateful to the Noida Authority for this policy that will enable homebuyers get possession of houses that are complete but cannot be handed over because of big land cost dues. “Credai thanks Noida for providing a solution and taking a progressive step. We also request Greater Noida Authority to come up with a similar plan to enable possession of apartments ready for delivery,” he said.