ET NEWS

The Noida Authority has begun putting up public boards outside housing projects whose promoters have failed to clear substantial land dues or apply for the government’s rehabilitation scheme, according to a report in the Times of India. Images of these boards are being uploaded on the Authority’s official website, signaling a new push to break the deadlock with defaulting builders. As per the TOI report, the first such board appeared outside Lotus Panache, a project by Granite Gate Properties currently undergoing insolvency proceedings before the National Company Law Tribunal (NCLT). The move, however, has sparked protests from residents, who argue it violates the moratorium imposed under the Corporate Insolvency Resolution Process (CIRP) and could disrupt ongoing revival efforts. “We have been rebuilding this project with our own funds under the NCLT process. This action by the Authority undermines buyer confidence and could undo the progress we’ve made. We will bring this to the NCLT’s notice,” said Amit Chauhan, a resident of Lotus Panache. Noida Authority CEO Lokesh M clarified that the step is not coercive but purely informational. “The boards are placed on government land and only state the dues claimed before the tribunal. There is nothing unlawful about it,” he said.Notably, a similar campaign last year had reportedly prompted several promoters to settle their dues. The initiative forms part of a larger recovery drive under the Legacy Stalled Real Estate Projects Policy, launched by the Uttar Pradesh government in December 2023. Based on the recommendations of the Amitabh Kant Committee, the policy offers ‘zero-period’ waivers and other reliefs to revive unfinished housing projects. During a board meeting on October 3, the Authority reviewed the policy’s progress. Out of 57 eligible projects (excluding those of Amrapali, Unitech, and those under NCLT), 35 developers have already opted for the scheme, depositing ₹528 crore — about 25% of their recalculated dues after Covid-era adjustments. Another 13 builders have paid partial amounts totaling ₹28 crore, enabling registration of 3,724 out of 5,758 eligible flats — a progress rate of roughly 65%. However, 22 developers continue to default, ignoring repeated notices. These projects now face a range of enforcement actions, including plot cancellations, sealing of unsold units, recovery as land revenue, and possible references to the Economic Offences Wing. “The government has extended every possible relief — from zero-period benefits to fair recalculations — yet some developers remain non-compliant. We will now act strictly as per the rules,” said Lokesh M. Before installing the boards, the Authority had issued final notices to these 22 non-compliant developers. Some have approached the Allahabad High Court and the state government under Section 41(3) of the UP Urban Planning and Development Act, seeking leniency. The Authority, however, maintains that no further extensions will be granted. “The 2023 rehabilitation policy was designed to complete stalled projects and provide relief to homebuyers — not to enable endless delays,” the CEO asserted. Meanwhile, to ensure timely registration for compliant projects, the Authority will continue organizing on-site registry camps and follow-up drives for homebuyers.