State gives 6 month reprieve to Builders to deliver Flats

In the wake of Covid-19 pandemic, the Uttar Pradesh government has given six months more to the developers of the group housing projects, which are covered under the zero period policy. Now, such developers can deliver the flats to homebuyers by the end of December next year instead of earlier deadline of June 30, 2021.

The developers had demanded the additional time so that they can finish their projects while taking benefits of the ‘interest waiver’ policy.

Under zero period policy, a builder can claim interest and penalty waivers for the period when construction at a realty project was disrupted due to legal issues. In December last year, the government had launched the scheme in order to give interest waivers to builders.

“We will provide the builders six months’ additional time as per the state government’s directions,” said Ritu Maheshwari, chief executive officer, Noida authority.

The move is aimed to benefit over one lakh apartment buyers in the twin cities of Noida and Greater Noida, officials said.

There are at least 100 housing projects in Noida alone, which were mired by court cases between farmers and the Noida authority that delayed the projects.

“We had demanded from the government to give us more time to deliver the housing projects because the construction was affected due to lockdown restrictions for the past three months. Now, the developers can finish their projects in the stipulated time period,” said RK Arora, UP president of National Real Estate Development Council (NAREDCO), a developers’ group.

The authority had allotted the housing land to developers after accepting 10% of the land cost. The remaining 90% land cost is paid in instalments in seven years. The authority also charges 9.5% interest on the remaining land dues, the officials said. But due to slowdown in the real estate sector, the developers have failed to pay dues on time.

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