The CEO of Greater Noida Authority has said that waiver on interest will be given to builders who have their projects stuck pertaining to the litigations.
This relief on interest will help the builders in restoring their stuck projects and they will be able to hand over the flats to the homebuyers without much delay.
In 2008-09, builders had been allotted land for residential housing. 10% of the total cost of the land was to be paid by the builders at the time of allotment. The balance of 90% was to be paid on the basis of installments. If the builders fail to pay the installment, the authority levies an interest of 12% on the principal amount. Builders majorly defaulted in installments payment once the land dispute started.
Therefore, various builders of Greater Noida had demanded that they should be provided with a relief on interest payments for the time when the construction was hindered due to the legal cases between the Greater Noida Authority and farmers.
The CEO has said that the time duration in which the construction was ceased due to litigation will be declared as the ‘Zero Period’. A builder will not be required to pay the interest for the default in installments during the Zero Period. However, he has said that the waiver will benefit only the real and genuine cases.
A very important task is to identify the genuine projects that were actually impacted because of the court cases. Therefore, a fresh survey has been ordered by the CEO and will be conducted to help the real cases.
Around 20 projects in Greater Noida are demanding a relief on interest. But the Authority cannot afford to provide waiver to everyone, and thus a strict survey will take place.