UP Government Directs Noida, Greater Noida to Cancel Allotments of Realtors with Outstanding Land Dues

The Uttar Pradesh government, under the leadership of Chief Minister Yogi Adityanath, has issued directives to the Noida, Greater Noida, and Yamuna Expressway authorities to commence the cancellation of allotments made to real estate developers who have failed to avail of a recently introduced state scheme aimed at reviving stalled housing projects. This scheme allows developers to pay their outstanding dues in instalments after benefiting from waivers, thereby addressing long-standing issues faced by homebuyers.

The policy, approved on December 21, 2023, offers significant waivers on interest and penalties, incentivizing developers to clear their dues. Developers were given a 60-day window to either opt for the scheme, settle their dues, and obtain permission for property registry, or face the cancellation of their allotments. With the expiration of this deadline, the Uttar Pradesh government has instructed authorities to take action against non-compliant developers.

According to Manoj Kumar Singh, Additional Chief Secretary of Uttar Pradesh, developers were expected to clear 25% of their total dues within the stipulated time frame to facilitate property registry. Failure to comply with this requirement will result in the cancellation of allotments, seizure of properties, and other measures aimed at recovering outstanding dues. The policy aims to alleviate the plight of homebuyers affected by stalled housing projects in Noida, Greater Noida, and the Yamuna Expressway areas, where an estimated 240,000 to 350,000 housing units remain incomplete due to various reasons.

While some developers have availed of the scheme and made partial payments, others are yet to fulfil their obligations. In Noida, out of 42 developers who agreed to pay dues under the scheme, only 16 have cleared their dues amounting to ₹115 crore. Similarly, in Greater Noida, 40 out of 97 developers have consented to pay dues, with only 16 fulfilling their obligations, resulting in the clearance of ₹73 crore. The situation is similar in the Yamuna Expressway area, where only two out of nine developers have made payments totaling ₹90 crore.

Following the directive from the Additional Chief Secretary, the concerned authorities are compiling data on housing projects for which dues have been cleared and those for which developers are yet to settle their obligations. This data will be submitted to the state government for further action.

Uttar Pradesh government's initiative underscores its commitment to addressing the challenges faced by homebuyers and revitalizing the real estate sector in Noida, Greater Noida, and the Yamuna Expressway areas. By holding developers accountable for their outstanding dues, the government aims to expedite the completion of stalled projects and restore confidence among homebuyers and investors in the region.