The Uttar Pradesh Chief Minister, Yogi Adityanath, direction to deliver at least 50,000 flats to homebuyers in the twin cities of Noida and Greater Noida by the end of 12th December cannot be fully implemented. The Confederation of Real Estate Developers Association (CREDAI) has confirmed that only 10,000 apartment can be handover to homebuyers by the end of December, only if builders are able to clear their pending dues and other mandatory formalities with Noida and Greater Noida Authorities.
This decision came in a high-level meeting that was held in the month of September at Lucknow in which a three-member committee was constituted that comprises of Urban Development Minister Suresh Khanna, Industries Minister Satish Mahana and Minister of State for Sugar Cane and Industry Suresh Rana. At that point, the builders had agreed to complete 50,000 flats for the projects that running out of money.
Pankaj Bajaj, the president of CREDAI NCR said, “After a fair estimation of available inventory and what we can offer buyers in real terms, we have found 10,000 apartments which are complete and at present only stuck in last stages of clearances with the Authorities. These are clearances which are withheld for small payments or compliances.” In addition to this, there are over 20,000 more apartments in the last stage of completion that can be delivered in the next few months if builders can manage to arrange funds to complete them.
Bajaj added, “Beyond these numbers, we have not been able to track or count any amount of flats which are ready for handover in recent months because most builders who are stuck in deliveries are cash-strapped. So unless there is a way to help these builders secure enough funds, completion and handovers will be delayed. All those builders who sold their apartments are extremely low rates are now finding it difficult to complete their projects.”
Real estate builders and developers in Noida and Greater Noida have been facing outrage by the government and homebuyers. Apart from this ire, they are under tremendous pressure to pay their outstanding to banks and other financial institutions. The recent cases of insolvency of some big names in the real estate have given nightmares to the builders. In a study done by a private agency unveils, Noida has over 25,000 unsold flats, whereas there are around 60,000 flats inventories piled up in Greater Noida.