Two builders surrender land to Noida Authority

Amid the financial crisis, the Noida Authority is mulling action against erring builders who have failed to abide by the deadlines to deliver possession to homebuyers, and are yet to clear outstanding dues, to the tune of more than Rs 15,000 crore, to the Authority.

In the wake of this, the authority has taken back the allotted land worth Rs 6,358 crore from two builder's groups who have failed to pay the debts even after receiving several notices from the authority.

The duo builders have earlier applied to surrender their land to the authority under project settlement policy (PSP).

"These builders failed to pay their huge debts to the authority. We have sought to rescue them and this is going to benefit the authority as well as the home buyers. The project settlement policy is aimed to cut down the problems in the realty sector" said a senior official of Noida Authority.

The realtors who have surrendered their land are Unitech builder's group and City center group. Their projects fall in different posh residential sectors in Noida.

The authority is planning to use these lands to provide to other builders under the group housing projects.

Projects of Unitech Builder are located in sector 96,113 and 117 in which around 14,07,327 meter square of land at a rate of Rs 11, 520 per meter square was allotted to these projects. 6,19,000 meter sq. of the total land has been taken back by the authority. The builder's group is now left with land worth Rs 900 crores.

The city center group has surrendered around 4,84,000 meter sq. of land and is now left with land worth Rs 600 crores.

The move has reduced the remaining debts of the builders to authority to nearly half.

In total, the authority will be getting around 13 lakh meter sq. of land which has been returned at the same rate it was allotted earlier. The future allotment will be done keeping in mind the reserved price rate.