The Noida government can permit co-developers to finish unfinished projects.

NOIDA: The authorities in Noida and Greater Noida are proposing a co-developer strategy as a single solution to two significant issues: completing completed housing projects that have stopped owing to a lack of funds and collecting its dues.

As a result of the regulation, businesses rather than realtors will be able to co-develop projects and complete them, as has been the case for some city initiatives that have become stuck.

However, it will be up to the new companies to pay off almost Rs 40,000 crore in outstanding land debt. The measure is anticipated to help thousands of homebuyers who have been waiting nearly ten years for their homes or the registration of their flats.

Confederation of Real Estate Developers Association of India (CREDAI), the builders’ association, recommended the co-developer policy, according to Ritu Maheshwari, CEO of the two bodies, in an effort to break the impasse over unpaid land premium dues.

Maheshwari claims that “the authorities have been working on a few regulations, including the co-developer policy, which would allow new developers to take over and finalize commercially viable incomplete projects.”

The new developers would have to make sure that the authorities’ debts were paid in full first, though. “We might think about giving developers incentives if they promise to pay their debts on time,” she continued.

Greater Noida complexes will benefit more from the program than Noida complexes because they are closer to completion.

Most notably, a co-developer policy was launched in 2017, however, because of problems with land dues, it was not successful.

CREDAI (NCR) secretary Gaurav Gupta stated that they have requested the state government to introduce amended rules in order to rationalize the land dues as well as to allow co-developers to finish stalled projects.

No promoter will proceed unless this is accomplished. The dues that the authorities are requesting need to be justified. Projects can only be deemed viable if their sales receivables exceed their project costs.

The authorities will also need to make sure that the necessary approvals are given on time to let new developers finish their projects on schedule, according to Gupta.

Builders owe the government around Rs 39,500 crore because most of the projects, which were started about ten years ago, were not finished on schedule.

Bringing in fresh promoters to finish stalled projects is nothing new, claims CREDAI. “Many projects in Noida have hired co-developers to complete them. However, the current situation is distinct because we are looking for a strategy to finish the halted projects.

Since finance would only be made available following the Authority’s approval, permission will be needed to secure the requisite approvals to recommence the projects, according to Gupta, who is also the director of SG Estate.

The government has begun sealing and canceling unsold inventory in an effort to recoup its debts. But given that third-party rights have typically been established, this has not achieved its intended result.

The government created a rescheduling meant policy earlier this year that allowed builders to pay the fees over the course of two years in four installments. In Greater Noida, developers of up to 20 group housing projects submitted applications; only 10 did so in Noida