HomeLatestDelays in Flat Registrations Amid Builder Payment Issues

Delays in Flat Registrations Amid Builder Payment Issues

Despite the Uttar Pradesh government’s approval of a new relief package for stalled real estate projects, the registration process for thousands of flats in Greater Noida remains in limbo. Seven months after the initiative was announced, a significant bottleneck persists due to 16 major builders, who account for approximately 38% of the total land dues, failing to remit the required 25% of their outstanding payments to the Greater Noida Industrial Development Authority (GNIDA). This impasse has left around 85,000 flat registrations pending, with only 4,000 completed.

The relief package, introduced in March by the Union Housing and Urban Affairs Ministry, includes several measures designed to assist builders facing financial difficulties. Among these measures is a two-year zero-period waiver that effectively reduces total outstanding land dues by 20% in light of challenges posed by the Covid pandemic. However, the package mandates that builders must clear 25% of their outstanding dues within 60 days to initiate the flat registration process. The collective unpaid amount from these builders totals ₹1,272 crore, translating to ₹289 crore in immediate dues necessary to unlock the registration process.

In light of these challenges, GNIDA is preparing a detailed list of defaulting builders and their properties, with potential actions including the cancellation of plots and the attachment of assets under the terms of the package. Notably, out of 98 builders included in the plan, 52 have complied with the payment requirements. As a result, the GNIDA anticipates receiving ₹1,400 crore from these compliant builders, which will enable the delivery of 37,957 housing units across 65 projects in the coming years. This proactive approach aims to expedite the registration process and alleviate the existing backlog, providing much-needed relief to prospective homeowners.

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