Noida authority seals Grand Omaxe society over Rs 4.57 Bn dues
ECONOMY & POLICY

Noida authority seals Grand Omaxe society over Rs 4.57 Bn dues

The Noida Authority sealed the Grand Omaxe housing society, developed by Omaxe Buildhome in Sector 93B, on Friday due to the non-payment of dues amounting to Rs 4.57 billion. The developer had failed to deposit the required 25% of recalculated dues, approximately Rs 1.14 billion, following a reduction due to the Covid zero-period relief, even after opting for the relief package. The Authority announced that unsold flats and vacant land at three projects?Grand Omaxe (Omaxe Buildhome) in Sector 93B, Antriksh Golf View (Colourful Estate) in Sector 78, and Matrott (Skytech Constructions) in Sector 76?would be sealed after giving developers an extended period to reschedule their dues under the Uttar Pradesh government's relief package, based on recommendations from the Amitabh Kant committee.

It was highlighted that only 22 out of 57 defaulting projects in Noida had accepted the rehabilitation package, which provides a two-year zero-period relief from April 2020 to March 2022, exempting developers from interest and penalties caused by Covid-related lockdowns. However, 29 developers, with cumulative land dues of around Rs 69 billion, have not yet taken up the package, leaving over 12,700 flats pending.

As reported earlier by TOI, Noida Authority is also considering filing complaints with the police's Economic Offences Wing (EOW) against developers for diverting funds received from homebuyers elsewhere.

The Greater Noida Authority also held a meeting on Friday, urging developers to clear their dues and expedite the registration process. Additional CEO Saumya Srivastava noted that, of the 98 defaulter projects, 13 builders had cleared their outstanding amounts, while 58 had paid 25% of their dues.

Srivastava added that a total of 71 builders had benefited from the policy, and permission had been granted for the registration of 9,558 flats in these 71 projects. During the meeting, builders were instructed to expedite the registration of remaining flats.

Builders have up to six months from the date of permission to complete the registration process without incurring a late fee. If they fail to deposit the 25% amount, their land allotments are at risk of being cancelled. Additionally, GNIDA plans to approach the EOW to request a forensic audit of defaulting projects.

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The Noida Authority sealed the Grand Omaxe housing society, developed by Omaxe Buildhome in Sector 93B, on Friday due to the non-payment of dues amounting to Rs 4.57 billion. The developer had failed to deposit the required 25% of recalculated dues, approximately Rs 1.14 billion, following a reduction due to the Covid zero-period relief, even after opting for the relief package. The Authority announced that unsold flats and vacant land at three projects?Grand Omaxe (Omaxe Buildhome) in Sector 93B, Antriksh Golf View (Colourful Estate) in Sector 78, and Matrott (Skytech Constructions) in Sector 76?would be sealed after giving developers an extended period to reschedule their dues under the Uttar Pradesh government's relief package, based on recommendations from the Amitabh Kant committee. It was highlighted that only 22 out of 57 defaulting projects in Noida had accepted the rehabilitation package, which provides a two-year zero-period relief from April 2020 to March 2022, exempting developers from interest and penalties caused by Covid-related lockdowns. However, 29 developers, with cumulative land dues of around Rs 69 billion, have not yet taken up the package, leaving over 12,700 flats pending. As reported earlier by TOI, Noida Authority is also considering filing complaints with the police's Economic Offences Wing (EOW) against developers for diverting funds received from homebuyers elsewhere. The Greater Noida Authority also held a meeting on Friday, urging developers to clear their dues and expedite the registration process. Additional CEO Saumya Srivastava noted that, of the 98 defaulter projects, 13 builders had cleared their outstanding amounts, while 58 had paid 25% of their dues. Srivastava added that a total of 71 builders had benefited from the policy, and permission had been granted for the registration of 9,558 flats in these 71 projects. During the meeting, builders were instructed to expedite the registration of remaining flats. Builders have up to six months from the date of permission to complete the registration process without incurring a late fee. If they fail to deposit the 25% amount, their land allotments are at risk of being cancelled. Additionally, GNIDA plans to approach the EOW to request a forensic audit of defaulting projects.

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