The Noida Authority is considering a proposal to issue completion certificates to single units of sick realty projects in Noida.
At present, the Noida Authority issues tower-wise completion certificates to housing projects. The certificate is issued only after the authority receives payments against the tower in question and finds it fit for living.
Land parcels had been allotted to builders at 10% percent of the cost when the BSP was in power. The remaining 90% was to be paid in instalments. Completion certificates were issued after builders cleared all dues. However, owing to a financial crunch, many developers failed to clear tower-wise dues. Consequently, home buyers too were impacted.
On Wednesday, Noida Authority CEO Amit Mohan Prasad chaired a meeting to address the builders’ issues. Among those attended the meeting were representatives from 3C, Amrapali, Assotech, Logix, Aims Max Gardenia, Unnati Fortune, and Aims Gardenia. The developers asked for interest to be waived on instalment default, besides unit-wise completion certificates.
While the authority hasn’t accepted the proposal, it has promised to get back to the developers. “Banks have stopped funding developers. Home buyers have also stopped making payments against booked flats. At the same time, the authority is charging them handsome interest on instalment default. Giving flat-wise completion is the best option,” said a representative on condition of anonymity.
Noida Authority Financial Controller Manmohan Mishra confirmed that flat-wise completion certificates were discussed. “The authority will examine the pro and cons of the proposal and take a call after that,” said Mr. Mishra.
The proposal will be implemented once the authority clears it and tables it during a meeting of the Noida Authority Board.