Finding nearly 50 developers with default payment, Noida Authority warned the builders to pay the defaulted amount soon or to face the legal action.
Noida Authority loses almost Rs.3000 Cr as many of the real estate developers do not pay their due amounts. Noida Authority found that around 50 developers with default payments.
It was during the BSP government that the system of acquiring land, with a mere 10% payment of the total cost, was introduced. The system was introduced so as to make the city an affordable home- destination.
Under the scheme the builders were given permission to build group housing projects with a 10% investment on the total land cost. However, recent probe by the Noida Authority revealed that many of the builders have stopped their payment to the Authority.
Realizing the depth of loss, now the Authority plans to amend the scheme. Available sources stated that the amendment will take place in the upcoming board meeting.
Interestingly some bigger and well-reputed real estate builders are also included in the list of default developers. Finance controller of Noida Authority Mr. G.P Singh said that this is absolutely against the prescribed law.
Mr. Singh revealed that it was really a surprise to see some big names of the industry among the list of default payers. Some of the big names are also included in the list of default developers. He assured that the Authority plans to amend the Scheme in a way that the default developers will be forced to pay the amount.
The scheme was introduced in the year 2008. The scheme aimed to attract the real estate investors to greater extents. Under the scheme the builder could lease the Authority – land after paying a mere 10% of the total amount.
The builders had to pay the remaining amount in installments to the Authority. The scheme was introduced and conceptualized as a boost to the small scale developers. Noida Authority has issued notices to the developers asking them to pay the defaulted amount. Authority warned that they will seize the land in case if the builder neglects the issued notices.