The UP government is likely to discuss an exit policy proposed by the Noida, Greater Noida and Yamuna Expressway authorities for allottees defaulting on their payment towards property.
The state government is likely to hold a meeting in Lucknow to discuss an ‘exit policy‘ proposed by the Noida, Greater Noida and Yamuna expressway authorities for allottees defaulting on their payment towards property owned by them. According to officials, the proposal was forwarded to the government after a joint board meeting of the three authorities cleared it in June this year.
Once approved by the government, allottees will be able to surrender their land back to the authorities in lieu of clearing outstanding dues owed to the development authorities.
An initial proposal, forwarded to the government in March this year, was returned with several queries. “The government had asked for certain clarifications in the proposed exit policy, which will be discussed in the meeting.
As per the proposed policy, allottees will have to forfeit 15% of the amount deposited with the Authority. For the balance 85% amount, the applicant will be allotted proportionate land out of the originally allotted plot. Thus, the revised land area so allotted would be at the rate at which the original land was allotted, explained officials.
The move will provide relief to thousands of homeowners who are unable to get possession or register their properties. According to officials, the proposal, termed as ‘relief package,’ by Noida’s financial advisors Ernst & Young, will also provide an exit way for allottees who have for some reason or the other not been able to take up construction on the land.
If the applicant is also interested in extra land, besides the revised area, land would be allotted at the current reserve/allotment rate. Any stamp duty, lease rent, processing fee, penal interest, transfer charges, re-instatement charges or any other statutory charges or penalty which may have been imposed on the applicant and which has not been paid by him till the date of the application, will not be deducted out of the 85% balance amount to be refunded.
The exit policy was formulated back in 2009 following the economic slowdown. But the government order issued at the time expired in March 2011. It’s only now that a fresh policy is being drawn up.
Currently, Noida Authority has to recover an outstanding amount of nearly Rs 15,000 crore from over 500 defaulters including group housing, residential, institutional, industrial and commercial categories of land use. Greater Noida Authority, on the other hand, has to recover Rs 7,000 crore. YEIDA has an outstanding amount of nearly Rs 2,400 crore.