Registry logjam won't be resolved, say realtors

NOIDA: Developers on Tuesday said the Supreme Court's dismissal of petitions to recall a 2022 order allowing Noida and Greater Noida authorities to claim dues amounting to Rs 39,500 crore was a "major setback" and won't help resolve the deadlock as more real estate projects will be pushed towards insolvency.
Authority officials, however, said the top court's decision removes all legal hurdles for them to recover dues.
"Builders should come forward and claim benefit of the reschedulement policy currently being provided by the two authorities. Besides that, developers can avail facilities of exemptions in time extension charges and flat-wise registries. In this way, the registry of flats that have been pending in various projects for a long time will be cleared," said Ritu Maheshwari, CEO of the Noida Authority and the Greater Noida Industrial Development Authority.
In November last year, SC recalled a 2020 order that had capped the interest rate at 8% on dues for land given on lease to developers. Developers Prateek Infra Projects India and Paramount Propbuild subsequently filed petitions against this recall. On Tuesday, the top court dismissed the petitions, saying it saw no reason to change its decision.
Subodh Goel, secretary of CREDAI (Western UP), said the latest development was a major setback. "The deadlock over registry of flats and payment of dues is not going to be resolved. We reiterate that more builders will approach NCLT (for insolvency proceedings) as they have money to clear the dues," he said.
According to authority officials, builders owe a total of Rs 39,500 crore, of which Rs 26,000 crore is to be paid to the Noida Authority and Rs 13,500 crore to GNIDA. If the 8% interest rate cap was implemented, both the authorities would have lost Rs 19,301 crore.
Data also shows that developers of around 90 projects of 121 have not cleared their land dues in Noida. Similarly, builders of 135 projects out of 195 are yet to pay up to GNIDA. Registries of flats at these projects cannot be done until a builder clears its dues.
Mihir Gautam, a homebuyer whose registry for a flat at Eco Village 2 in Greater Noida is pending, said the top court's order wasn't unexpected.
"It is the responsibility of the authorities to collect dues from the builders while safeguarding the interest of lakhs of homebuyers. One option could be that it auctions the land lying unused by the builders and recovers its dues. The government should now step in and give a solution," Gautam said.
The Noida and Greater Noida authorities, in December last year, had approved a re-schedulement policy for developers to pay their dues over the next two years. They said the move was an attempt to grant relief to the developers.