The SC order had removed the cap of 8% in case of delay in depositing land price by builders to the authorities and kept it in the range of 15-23 percent compound interest. The developers felt the order could delay the registry of 1.5 lakh homes.
“After studying the SC order, and the authorities’ response, the developers felt that the 15-23 percent compound interest would raise the final amount substantially. We are of the view that it would take the final figure much higher than the current market rate,” said Manoj Gaur, President, CREDAI NCR and CMD Gaur Group.
In a meeting of CREDAI, over 100 developers of the region said that the delays were also on account of events outside their control.
The reason for delay include, plots allotted to them not having clear titles, NGT order on Okhla Bird Sanctuary where it banned all construction activities, settlement of the farmers’ compensation issue that took an inordinately long time and access to plots and development of basic infrastructure such as electricity, as promised by the authorities, not materializing within the stipulated time.
As a result, developers had to defer taking possession of the land.
“In that case we might have to take recourse to NCLT. Moreover, since occupancy and completion certificates are linked to the clearance of the dues, the buyers would not be able to register their homes,” Gaur added.
The developers also felt that the present situation demanded a One Time Settlement (OTS) scheme as introduced in Haryana.
The developers also decided that if the issue is not settled, they will represent the Noida and Greater Noida authorities, the UP finance minister, and the state chief secretary.