The Noida Authority officials are considering the idea of approaching the state government to overlook the interest that the realtors have to pay as land dues for the duration when the construction was hindered and delayed because of orders from National Green Tribunal (NGT) and land disputes by farmers, respectively.
After the NGT order was passed on 14th August, the authority was instructed to bring all the construction and development to a stop which did not have an environmental clearance. 104 real estate projects in total were impacted this order which were situated near the Okhla Bird Sanctuary. Developers asked to overlook the interest that they had to pay giving reasoning that the delay in the projects was caused due to the order by NGT.
Noida Authority will approach the state government to talk about the solutions of making builders deliver their incomplete projects. Waiving off the interest can actually benefit the builders. Noida Authority is also trying to come up with ways to resolve homebuyers’ problems who have invested their life savings.
Another option to help the builders in delivering the stuck projects is the authority’s step to collect the interest on land dues at some later time in the future. State government can provide a provision which will state that the builders have to pay the land dues only once the project is completed. But if the builder himself is not willing to complete the project, the interest will be recovered immediately by the authority.
The cost of land is paid is supposed to paid in installments to the authority. And if the builder is at default in paying the land dues, the amount increases as 11% interest is charged on the amount which is left. Therefore, if the state government decides to waive off the interest, the builders will be able to borrow funds from banks and the stuck projects can be delivered on time.
The authority cannot take the decision of waiving off the interest dues alone, the final approval from the state government is needed.