Noida Authority Withdraws Benefits, Prepares Action Against Builders Failing To Register Flats

The Noida Authority has decided to crack down on builders who have failed to register flats for homebuyers, citing violations of government orders and recommendations of the Amitabh Kant Committee. Notices will soon be issued to 19 identified builders, with further action to follow.

Officials stated that around 165,000 flats in Noida and Greater Noida, launched before 2014, remain stalled. Builders had collected payments from buyers but either failed to hand over possession or did not grant ownership rights.

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To provide relief, the government had allowed builders to pay outstanding dues in four instalments based on the Marginal Cost of Funds-based Lending Rate (MCLR). Builders were required to deposit 25 per cent every six months. While 35 builders registered 5,536 flats after paying the first instalment, only around 3,900 flats have been registered so far. Since 4 November, no builder has taken any further action despite final notices issued on 9 November.

Consequently, the Authority’s Group Housing Department has decided to withdraw all benefits previously granted to these builders. The Finance Department is currently calculating the dues, and action will be taken after verification.

Builder-Buyer Status Overview:

-Total defaulting builders: 57

-Deposited 25 per cent in Authority’s account: 35

-Partial deposit: 12

-No deposit yet: 4

-Refused/unwilling to deposit: 6

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Flat Registration Status:

-Total unregistered flats in 57 projects: 21,034

-Flats allowed for registration after 25 per cent deposit: 5,536

-Flats registered so far: 3,900

Financials:

-First instalment (25 per cent deposit): Rs 530 crore

-Partial deposit: Rs 25.38 crore

-Total deposited so far: Rs 720 crore

“Despite receiving benefits, the builders have failed to comply. Their benefits will now be forfeited, and dues calculation is underway,” said Vandana Tripathi, Additional Chief Executive Officer, Noida.