The National Real Estate Development Council ( NAREDCO), under the aegis of the Ministry of Housing and Urban Affairs (MoHUA), has urged the Noida, Greater Noida and Yamuna authority for the reassessment and rationalisation of land dues to revive the stuck projects in the region.
“Authorities should reassess developers’ outstanding dues considering Zero Periods for time lost due to land disputes and stay orders, COVID-19 lockdowns and disruptions, NGT-imposed construction bans, Okhla Bird Sanctuary restrictions, Construction stoppage due to GRAP restrictions,” the Uttar Pradesh chapter of Naredco has recommended in the letter.
It has also requested the authorities to recalculate land dues using simple interest as per lease deed terms, instead of half- yearly compounding, which has inflated dues to multiple times the original land cost.
“Developers who have already paid more than the original land premium must not be shown as defaulters because of accounting methods,” Naredco has said.
Naredco UP President R K Arora said that in the interest of home buyers and all stakeholders , Naredco has submitted some constructive suggestions to get over this impasse. He said that Naredeco has proposed some recommendations aligned with th the Amithabh Kant committee’s recommendation.
The apex body has also recommended that to balance authority revenue and project viability, a five-year repayment plan should be introduced.
Developers to pay 5% of the reassessed dues upfront while the remaining 95% to be repaid through an Escrow Account linked to project receivables.
All homebuyer payments and project receivables to be routed through the escrow account and A fixed proportion (to be determined by Authority) of each inflow to be automatically deducted toward land dues.
“The Developer has to submit DPR of Project and the ratio of dues to receivables to be verified by an Authority-approved Valuer for transparency and fairness. This system ensures continuous repayment to the Authority while keeping funds available for construction and completion,” Naredco has said.
“Authorities should reassess developers’ outstanding dues considering Zero Periods for time lost due to land disputes and stay orders, COVID-19 lockdowns and disruptions, NGT-imposed construction bans, Okhla Bird Sanctuary restrictions, Construction stoppage due to GRAP restrictions,” the Uttar Pradesh chapter of Naredco has recommended in the letter.
It has also requested the authorities to recalculate land dues using simple interest as per lease deed terms, instead of half- yearly compounding, which has inflated dues to multiple times the original land cost.
“Developers who have already paid more than the original land premium must not be shown as defaulters because of accounting methods,” Naredco has said.
Naredco UP President R K Arora said that in the interest of home buyers and all stakeholders , Naredco has submitted some constructive suggestions to get over this impasse. He said that Naredeco has proposed some recommendations aligned with th the Amithabh Kant committee’s recommendation.
The apex body has also recommended that to balance authority revenue and project viability, a five-year repayment plan should be introduced.
Developers to pay 5% of the reassessed dues upfront while the remaining 95% to be repaid through an Escrow Account linked to project receivables.
All homebuyer payments and project receivables to be routed through the escrow account and A fixed proportion (to be determined by Authority) of each inflow to be automatically deducted toward land dues.
“The Developer has to submit DPR of Project and the ratio of dues to receivables to be verified by an Authority-approved Valuer for transparency and fairness. This system ensures continuous repayment to the Authority while keeping funds available for construction and completion,” Naredco has said.
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