Builders Defaulting, Buyers Suffering In Delhi-NCR
The Gautam Buddha Nagar Administration has publicly posted the names of the district's top 10 defaulting builders on the walls of the DM office. Incomplete projects continue to be a nightmare for homebuyers who have invested their life's savings into these stalled projects.
Supertech Ltd. owes the most to the Noida authority at more than ₹111 crore, followed by Logix City Developers Pvt. Ltd. at ₹28 crore. Next are Mascot Homes Pvt. Ltd. at ₹20 crore, Logix Infrastructure Pvt. Ltd. at ₹13 crore, and Rudra Buildwell Homes Pvt. Ltd. at ₹11.65 crore. By not paying the due amounts, the builders are holding up the NOCs (No Objection Certificate) that is required from urban authority. The absence of this NOC means that homebuyers cannot claim posession of their flats, for which many still pay installments to builders or as loan repayments. After the Supreme Court upheld the Allahabad High Court’s 2014 to have the 40-storey towers demolished in Supertech Emerald Court, there were celebrations by the RWA after the 9-year case. The court upheld the residents’ right to safety, cleanliness, and ventilation, and the overall quality of life. In 2019, ATS undertook to complete 4,500 hundred delayed flats of Logix Group in Noida. ATS bagged Logix Blossom Greens, Blossom County, and Blossom Zest. NBCC was tasked with completing the embattled Amrapali Group’s projects in July 2019. However, it told the Supreme Court last month that the project completion would be delayed due to a lack of funds. In August this year, the Noida Authority in its 199th board meeting extended the deadline for 16 developers to complete projects by December 2021 under its “zero period” policy. “The developers who have given written assurance to complete their pending projects by December 31, 2021, have been given an extension till December 31, 2021 from June 30, 2021 as part of the zero period policy. 16 (land) allottees have been issued letters for giving written assurance regarding completing the incomplete projects by December 31, 2021” said the authority in a press statement. The real estate has been plagued with stalled projects due to funding problems and lack of clearances. One of the major issues has been fund diversion which leads to inordinate delays and prolong the financial stress upon homebuyers. In July this year, Uttar Pradesh’s industry minister Satish Mahana told reporters that stes are being worked out to complete the pending projects of builders such as Unitech, Jaypee, and Amrapali: "We are trying to resolve the issue... Last week, we held a high level meeting. We have given directions... To protect buyers interests, we have taken steps and we are trying, so that maximum issues can be resolved". In January, Times of India reported that 1,90,120 projects are stalled in NCR, the highest by region in the whole country. Last month in August, Financial Express reported that 1.74 lakh flats were completely stalled across 7 cities, of which 66% were located in Delhi NCR. Banks have been reluctant to lend to real estate developers which has precipitated a fund crunch. Anarock Property Consultants, whose report was quoted by the Express, said that prospects for homebuyers with stalled and delayed projects were “disastrous” and “bleak at best”. The Real Estate (Regulation and Development) Act, 2016, was brought in to protect the interests of homebuyers, infuse transparency into the industry, and formalize its practices. It mandated setting up authorities in each state for registration of properties and grievance redressal.