The Noida authority will grant developers another opportunity to avail benefits under the Uttar Pradesh government’s 2023 scheme for stuck housing projects. The decision extends a lifeline to builders who have so far failed to deposit the mandatory 25% of their total financial land dues.
The authority had previously proposed in 2024 to withdraw these benefits, which include substantial interest waivers on outstanding land cost payments.
However, the governing board has now opted for a more conciliatory approach. “The board has reversed our earlier decision and decided to give another opportunity to the developers who want to use the benefits of the December 21, 2023, scheme,” Noida authority CEO Lokesh M told HT on Monday.
The move is expected to give two main benefits: first, it will benefit homebuyers suffering due to an inability to register their properties, and second, it will enable the authority to recover long-pending financial dues by getting projects back on track.
The policy is targeted at 19 identified stalled housing projects, encompassing an estimated 15,000 affected homebuyers. Under the Uttar Pradesh government’s original 2023 policy, developers of stalled projects were offered interest waivers if they opted to pay 25% of their total dues upfront, with the remaining 75% payable over three years. This structure was designed to unlock the registry process for homebuyers.
The authority will now examine requests from the defaulting developers on a case-by-case basis, with each case requiring board approval. Officials, who asked not to be identified, clarified that builders who defaulted on instalments after an initial 25% deposit will only be granted permissions for proportionate flat registrations. Any further relief would require fresh approval, with no automatic extensions.
The 2023 policy also mandated action against developers who did not utilise the scheme, including the attachment of project assets and personal properties to recover dues. However, authorities now acknowledge that a purely punitive approach may not resolve the core issue. “That will not solve the problem,” officials stated, indicating a shift in strategy. Instead, the authority plans to call the promoters of the 19 projects individually to negotiate resolutions.
The Confederation of Real Estate Developers Association of India (CREDAI), a realtor’s group, has welcomed the move. “The Noida authority’s move to provide another opportunity to the developers under 2023 scheme, will benefit not only the developers but also the home-buyers, who are yet to get the registry done. We will also encourage the promoters to use this scheme, and revive the stuck project,” said Dinesh Gupta, president of CREDAI’s Western UP Chapter.
“The Noida authority must ensure that all homebuyers get registry done, and also get possession without further delay by pursuing developers to fulfil their promises made in agreement because there are many buyers who have been suffering for long,” said Madhvi Singh, a homebuyer.
Based on recommendations by former NITI Aayog CEO Amitabh Kant, 57 defaulting projects were identified under the government’s stalled project policy. Of these, 29 builders deposited 25% of their dues, amounting to ₹276 crore, and others paid partial amounts, bringing the total collection to ₹378.73 crore. However 19 did not use the scheme, and remaining out of 57 were facing legal cases pending in the courts, said officials.