The Noida Authority plans to approach the Economic Offences Wing (EOW) to investigate developers who have not availed the Uttar Pradesh government's rehabilitation package for stalled residential projects. Of the 57 defaulting projects, 22 have accepted the package, which provides a two-year zero-period relief from April 2020 to March 2022, exempting them from interest and penalties due to Covid-related lockdowns.
However, 29 developers, collectively owing Rs 69 billion in land dues and involving over 12,700 flats, have yet to take up the offer. These developers have claimed there are no unsold inventories, raising concerns about where the funds collected from homebuyers have gone. Lokesh M, CEO, Noida Authority, stated that the EOW will be asked to conduct a financial audit to trace the diversion of these funds, and an FIR may be filed if necessary.
The decision to involve the EOW follows Chief Minister Yogi Adityanath?s recent directive for authorities to take punitive measures, such as sealing unallocated flats and reclaiming unconstructed areas from non-compliant developers. The Authority has also clarified that developers who paid 25% of their recalculated dues but have not completed flat registrations will not receive further relief.
To date, 22 developers have paid Rs 2.75 billion as part of their recalculated dues, allowing 2,558 homebuyers to register their flats, with 1,298 registrations completed. The total dues from the 57 defaulting projects were initially Rs 82.73 billion, but a rebate of Rs 18.66 billion reduced them to Rs 63.73 billion. The 29 non-compliant developers, however, remain ineligible for this relief, leaving their dues at Rs 69 billion.
(ET)
