CREDAI asks for OTS scheme for settling pending dues of builders

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CREDAI asks for OTS scheme for settling pending dues of builders

They have asked for bringing out a practical solution to the financial dues.

CREDAI asks for OTS scheme for settling pending dues of builders

Noida: The Confederation of Real Estate Developer's Association (CREDAI) wrote to the Uttar Pradesh's infrastructure and industrial department asking for one-time settlement (OTS) scheme for settling down pending financial dues of builders to revive stuck housing projects in Noida, Greater Noida and Yamuna Expressway areas.

They have asked for bringing out a practical solution to the financial dues. The authorities of Noida, Greater Noida and Yamuna Expressway have been successful in recovering the dues amounting to Rs 35,000 crore from 300 housing projects. 

Noida Authority, Greater Noida Authority and Yamuna Expressway Authority are finding it difficult to recover Rs 25,000 crore, Rs 7,000 crore and Rs 3,000 crore respectively.

Under the current arrangement, all the three authorities allot land for realty projects after accepting 10 per cent of the land cost. The rest of the amount are paid in installments. 

A Noida Authority official talking to HT said, “Amid the economic slowdown, the builders have discontinued installment payment which resulted in financial crisis.”

In February last year, the UP government had approved an OTS scheme that offers a waiver of 2 per cent on total financial dues for projects under Ghaziabad Development Authority and Lucknow Development Authority. Defaulting builders can avail this facility for three months. 

Noida Authority, Greater Noida Authority and Yamuna Expressway Authority were not covered under this as they are under the Uttar Pradesh Industrial Development Act – 1976.