Housing Authorities in Noida, Ghaziabad Give Flexibility to Homebuyers on EMI, Dues
Amid Coronavirus (COVID-19) led lockdown, housing authorities in both Noida and Ghaziabad have given relief to their residents for 3-months time. On the one hand, Greater Noida Industrial Development Authority (GNIDA) has decided to extend all of its settlement schemes while on the other hand, Ghaziabad Development Authority (GDA) has decided not to levy interest on EMI till June 30.
The move has come after the Uttar Pradesh government on Tuesday decided to relieve builders from penal interest and other dues for the period their project is delayed due to litigation if they pass on this benefit to the homebuyers.
The decision to allow a “zero period” benefits to builders was taken at a meeting by the state cabinet chaired by UP CM Yogi Adityanath.
Industrial Development Minister Satish Mahana told reporters that the benefit will apply to builders who are estimated to give possession to homebuyers by June 2021.
The state govt is expecting that one lakh new homes to be built by that time.
The builders will be freed from payout the penal interest and other dues if the housing projects are delayed due to litigation, National Green Tribunal directions or a delayed deed execution.
He also said that the zero period policy will also apply if a builder can’t start the project due to the lack of an approach road or the authority’s incompetent to acquire land in time.
He further said that the state government has also decided to begin inquiries against the official who is responsible for the delay in the handover of land to the builders.
Deep Chandra, Additional CEO, Greater Noida said that a lot of people are finding it difficult to move to complete paperwork and therefore, it is required to extend the arrangement plans. “From March 31st, the deadline has been extended to June 30. Sooner, the situation shall improve and people would be able to pay the pending dues”.
Individuals allotted plots or schemes related flats approved by the Greater Noida Authority in the past, would get extra time to pay dues concerning the additional benefit of 64.7% for farmers, penalty on delayed lease deed execution or penalty on outstanding premiums. A discount of 40% would be on offer. Government Officials will hold a meeting in the week to come to discuss the final implication of the move on the Authority’s balance sheet.
Moreover, GDA has decided to pass on the benefits of moratorium announced by RBI to its allottees. “RBI has issued an advisory to banks that the EMIs should be deferred by three months and we want to pass on the benefits to the buyers. No penalty will be levied till June,” said a senior GDA official.
The move would provide support to as many as 11,000 residents in the region. GDA taxes yearly interest of 11% over defaulted amount as penalty. And in the case of successive defaults, the interest rate is a hike to 14%.
