Noida And Greater Noida Considers Cooperative Funding Programme By Co-Developers To Complete Stalled Housing Projects

Noida and Greater Noida officials intend to launch a cooperative funding program to revive stalled housing projects in the twin cities.

The move aims to redress the concerns of numerous homebuyers, reports Hindustan Times.

The Confederation of Real Estate Developers Association of India (CREDAI) — a builders' lobbying group in India, has urged authorities to implement a scheme that would address the issue of delayed projects in Noida and Greater Noida, and benefit around 300,000 homebuyers.

Ritu Maheshwari, CEO of Noida and Greater Noida authorities, stated that upon receiving the proposal, they have been considering the idea of permitting co-developers to complete projects that have been left incomplete or delayed due to financial issues.

She added, “After receiving their proposal, we decided to work out the idea of allowing co-developers to develop projects that have been left incomplete or have been delayed owing to a fund crisis. We are considering a proposal that would allow a new developer to take over the delayed project if the new developer is willing to pay the land costs owed to us”.

Under the scheme, co-developers will partner with the original developers of stalled projects that are commercially viable and invest funds to complete the projects as well as take the onus for clearing land dues amounting to a collective Rs 39,000 crore that are pending with the authorities, according to report by Money Control.

However, CREDAI opposes new developers being burdened with land cost dues.

In Noida and Greater Noida, around 90 and 100 projects respectively are facing delays of up to 10 years due to lack of funds.

This has affected the interests of nearly 300,000 homebuyers who cannot register their flats as the realtors have failed to complete the projects.

Nikhil Havelia, Credai's Secretary, revealed that they suggested the concept of a co-developer to the authorities due to the failure of the old developers to complete the remaining 50-70 per cent of around 200 real estate projects in two cities because of financial constraints.

The projects require last-mile funding, which a new developer can provide by infusing funds, finishing the project, and delivering it to homebuyers.

This initiative can potentially resolve the longstanding problem of incomplete projects.

Most developers whose projects are stalled were granted group housing land between 2008 and 2010 and were supposed to deliver flats by 2012-13.