The Noida Authority has approved two projects under the Uttar Pradesh government’s co-development policy, allowing Nimbus Projects and Theme County to revive stalled developments in sectors 168 and 115, respectively.
As published by the The Economic Times, this initiative aims to support approximately 1,000 homebuyers, ensuring payment of dues and financial closure by the new developers.
The co-development policy has been designed to address the ongoing crisis in the real estate sector in Noida and Greater Noida, where numerous projects have faced delays and financial hurdles. The policy enables financially stable developers to take over these stalled projects, providing a pathway for their completion.
Project Details
- Nimbus Projects:
- Project: Sunworld Residency
- Location: Sector 168
- Nimbus Projects will take over the Sunworld Residency project, which has been stalled, to revive its construction and restore confidence among the homebuyers.
- Theme County:
- Project: Another stalled residential project
- Location: Sector 115
- Theme County’s involvement aims to complete the development and provide clarity and assurance to approximately 1,000 homebuyers awaiting their properties.
As part of the co-development initiative, the new developers are required to fulfill several critical financial responsibilities:
- Clearing Dues: Both developers must settle all outstanding dues with the Noida Authority. This is crucial to avoid further financial complications for homebuyers.
- Securing Construction Funds: The developers are responsible for arranging the necessary funding to complete both sold and unsold units. This financial commitment is essential for resuming construction promptly.
- Compliance with RERA: The new developers must address any cases filed under the Real Estate (Regulation and Development) Act (RERA), ensuring transparency and adherence to regulatory standards.
According to the Confederation of Real Estate Developers’ Associations of India (CREDAI), there are about 190,000 housing units worth ₹1 lakh crore stuck across Noida, Greater Noida, and Ghaziabad. This situation has arisen from various factors, including:
- Insolvency Proceedings: At least 36 projects in Greater Noida are currently facing insolvency proceedings, which complicate the recovery of investments for homebuyers.
- Outstanding Payments: An estimated ₹40,000 crore is owed to the Noida, Greater Noida, and Yamuna Expressway authorities, including premiums, interest, and penalties related to allotted plots.
The legacy of stalled projects has been compounded by developers who previously took on projects without the financial capability to complete them. Many developers were under contractual or debt management arrangements, failing to address their financial, legal, and authority responsibilities.
Under the co-development policy, new developers can leverage their credit ratings and financial stability to secure loans necessary for completing these stalled projects, contrasting with the previous promoters who were often in default.
The approval of these projects under the co-development policy is expected to have several positive implications:
- Economic Revitalization: The completion of these projects will stimulate the local economy, generate jobs, and enhance the overall real estate market in the region.
- Restoration of Trust: By enabling credible developers to take control, the initiative seeks to restore faith among homebuyers and investors in the real estate sector.
- Long-Term Solutions: This policy could pave the way for addressing similar stalled projects in the future, potentially creating a sustainable framework for managing real estate developments.
The Noida Authority’s approval of Nimbus Projects and Theme County to revive stalled projects marks a critical step in addressing the challenges faced by homebuyers in the region. By fulfilling financial obligations and adhering to regulatory standards, these developers are positioned to bring much-needed completion to residential projects in Noida. As the real estate landscape continues to evolve, the co-development policy serves as a beacon of hope for those affected by the prolonged delays in the sector.