Noida: In a significant move to recover long-standing dues from real estate developers, the Noida Authority has imposed strict restrictions on builders, including halting approvals for building maps and layout modifications in several group housing projects. While this action aims to curb financial losses to the Authority, it is likely to cause complications for thousands of flat buyers awaiting possession or property registration.
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23 Group Housing Projects Affected
According to officials, the Authority has suspended building map approvals for 23 group housing projects, most of which were approved between 2009 and 2014. As per current regulations, developers are granted five years for construction from the date of map approval. Upon expiration, builders are required to apply for an extension of validity. However, the Authority has now begun rejecting such extension applications for developers who have not cleared their dues.
In the latest action, three developers’ applications for extension have been rejected, and further permissions related to subdivision, layout amendments, or the appointment of co-developers have been put on hold.
Crackdown on Non-Compliant Builders
This action is targeted at builders who, despite availing benefits under the Zero Period Policy introduced based on recommendations by the Amitabh Kant Committee in December 2023, have failed to settle outstanding payments. The policy was designed to offer relief to builders affected by delays due to external factors such as the pandemic and environmental restrictions.
At the time of implementation, 57 defaulting developers were identified under this policy, collectively owing around ₹7,800 crore to the Authority.
Buyers Caught in the Crossfire
Approximately 21,000 flat buyers are directly impacted, with their property registrations still pending. Although the Authority offered a two-year Zero Period benefit and waived nearly ₹1,500 crore in dues across the sector, only partial compliance has been achieved.
To date:
Dues of 6 developers have been fully settled.
28 builders are in the process of making payments.
23 builders have not initiated repayment.
Over ₹600 crore has been recovered so far, enabling the registration of around 2,700 flats.
Future Impact on Housing Projects
With the new directive:
All construction activities in the affected projects will be suspended.
New layout proposals or modifications will not be entertained.
The appointment of co-developers is disallowed until dues are paid.
This move mirrors similar action taken in 2021, when the Authority halted map approvals for the Sports City project, a restriction that remains in force to date.
Conclusion
While the Noida Authority’s decision underscores its intent to enforce accountability and recover public dues, the collateral impact on genuine homebuyers remains a matter of concern. With construction halted and registrations delayed, thousands of families may now have to wait longer for possession and legal ownership of their homes.