In Noida, Greater Noida and Ghaziabad, for instance, over a 100 realty projects are currently functioning without sanctioned maps and registrations, according to the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera). Affected are lakhs of homebuyers who have sunk their life savings in these projects.
In fact, these builders are in a catch-22 situation as they do not have funds to pay up their dues to the respective industrial authority for which their plans are not getting periodic review. With plans not reviewed and stamped by the authority concerned, officials said, the UP-Rera is also not renewing their registrations without which they are not able to secure loans to help settle the government debts.
Balvinder Kumar, member of UP-Rera, told TOI, “It’s a chain of financial logjam which has precipitated over the pandemic period, derailing over a hundred projects in Noida, Greater Noida and Ghaziabad. We have started meeting these builders to secure their compliance but most of them have liquidity issues. We are going to find a way to help them out of the tight spot through some bailout.”
With immediate revival seeming out of hand, many builders could be on the brink of a major financial deficit, if Rera is to be believed. Lakhs of buyers are impacted because of these builders, Rera officials said.
Kumar said, “We have given two pieces of advice to the builders. Those who are on the verge of completion, we have asked them to complete construction fast and work towards getting the completion and occupation certificates from authorities. Some recoverable dues from buyers would help them in cash flow. For those who are far from completion, there has to be some kind of bailout so that the homebuyers do not suffer.”
According to RK Arora, the president of builders’ body Naredco-UP, cash flow has always been a problem in the industry. “It has escalated during the pandemic. The builders are not being able to regulate their financial commitments. There is an urgent need for the government to step in to help the cash-strapped developers, we have made multiple requests.”
Kumar said that builders already have one-year relaxation on registration validity and the UP-Rera has given an additional exemption of six months for all under-construction projects from March 2021.
