Noida Authority to discuss ways to recover dues from builders

In order to recover its outstanding dues of nearly Rs 20,000 crore from defaulting builders, the Noida Authority has floated a proposal which will be discussed at a meeting scheduled between chief minister Yogi Adityanath, the cabinet committee — comprising three ministers — and the CEOs of the three authorities in Lucknow on Tuesday. The proposal includes forensic audit of each builder, submitting claims in National Company Law Tribunal (NCLT), getting the Gautam Budh Nagar district administration to issue Recovery Certificates and liquidating assets of defaulters. Last month a meeting was held between the cabinet committee and Confederation of Real Estate Developers’ Association of India (Credai) to resolve the builder-home buyer stalemate. During the meeting, Credai had submitted an 18-point proposal to bail out sick realty projects in the district. As per the Credai proposal, individual co-developers had said they would be willing to join hands with sick projects or defaulting developers on certain terms and conditions. The committee, however, failed to satisfactorily address the issue of recovering the outstanding dues, nearly Rs 35,000 crore, which the builders owed the development authorities of Noida, Greater Noida and Yamuna Expressway areas. According to media reports, not happy with Credai’s bailout package, the Authority has come up with the four-pronged proposal. Greater Noida Industrial Development Authority (GNIDA) is also not in favour of supporting the bailout package proposed by Credai as it would mean a huge financial burden on the three Authorities, which are already dealing with financial crunch.