Builders overdue to landowners will soon go public is an initiative that has been taken by the Greater Noida authority in order to help safeguard the buyers’ interest by putting up hoardings that display the financial dues of the builders at their housing project sites. The authority will put up boards outside the housing project’s site, mentioning details of the pending dues by the builder
The move is aimed at informing homebuyers so that they can make an informed choice. However, details will be put up on the hoardings of only those builders who have not paid up their dues despite repeated notices.
Narendra Bhooshan, chief executive officer (CEO) of the Greater Noida authority said that the authority has taken this decision to put these details up at errant builders’ housing project sites so that homebuyers are aware about the financial status of the project. Besides this, it has started the process of recovering land dues by using provisions mentioned in the lease deed.
The move is also aimed at putting pressure on builders who have not been paying dues.
Builders got the land after payment of 10% of total land cost. According to officials, they have defaulted on payment of the remaining land cost, putting the authority into a financial crisis. The Greater Noida authority has been struggling to recover around Rs 7,500 crore from around 203 builders. Earlier on September 6, 2016, the authority had made defaulter builders’ names public on its website for homebuyers’ to see. But later, the authority removed the list from the website under pressure from builders, as some of them complained that banks had started troubling them after seeing the list, officials said.
The authority said it will start cancelling land allotment to builders if they fail to pay dues.
The authority had issued a land cancellation notice to a builder that had Rs 8 crores pending dues. After it issued land cancellation notice, the builder deposited Rs 2 crores to save the plot. Similarly, it will issue this kind of notices to other defaulting builders.
The authority will also ensure escrow accounts are opened to maintain transparency in fund utilisation as per the directions of the Uttar Pradesh real estate regulatory authority.
Source: Hindustan Times