The new Exit Policy, when implemented, will provide relief to thousands of homeowners who are unable to get possession or register their properties.
Update as on October 22:
Taking serious note on the growing problem of NCR buyers, the three development authorities of Gautam Budh Nagar shared a common agenda on timely delivery of projects to help buyers. This good news came when three board together agreed upon the new rule and cleared the long-awaited Exit Policy for realtors those who are struggling to complete under-construction projects in Noida Greater Noida.
The authorities (Noida, Greater Noida and Yamuna Expressway) have approved a series of measures under this new policy in an attempt to protect the interest of homebuyers and bring new hope in the real estate sector.
The implementation of Escrow Account is primary among all rules that will be monitored by the Noida and Greater Noida Authorities. The account will will be used to finish housing projects running behind schedule. The project settlement policy is remaining, has been sent to state government for approval and will come into force once it gets the green signal.
Update as on September 12:
Exit Policy to be Discuss by UP Government
The New Exit Policy rules were on September 12 put up for discussions and he 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.
Update as on June 06:
New exit policy to help realtors, buyers
The three development authorities of NCR may soon bring new exit policy for realtors. As per new policy, builders those who have acquired land for a group housing project and not able to execute it for any such financial reason, may quit and get their deposit back, if they want to move out from the project.
Builders can surrender surplus land that is unused to the authority. This has been decided jointly in a board meetings and proposal on this is being prepared and will sent to Uttar Pradesh government for further approval.
Prashant Tiwari, Chairman, Prateek Group says, “At present, real estate is recovering from the slowdown phase and there are various factors due to which developers are unable to deliver their projects. Most adverse amongst them is slump in realty sales which is cutting down the developers funds. Due to such circumstances, developers have not been able to launch the new phases of their projects too. In many cases they have defaulted land payments to authorities also. The developers are happy with this exit policy as this will help them clear their financial liabilities and allow them to complete their existing projects.”
This new move has been welcomed by developers and home buyers. Exit Policy will put positive shadow in real estate market, say realtors.
The new exit policy chiefly entails that:
- Suppose realtors bought hundred acres of land to construct a group housing project and they may have completed one or two phase of their approved projects, but current market situation is not favouring and they may not willing to take risk to launch another phase. The policy allows him to surrender the rest of the parcel of land to the authority and get back deposits.
- For instance, realtors owe dues of Rs 3,000 crore. If the new policy is implemented, developers can get rid of unused land can use the refunded capital in completion of their existing projects.
- Money will be refunded to the developers at land allotment rates only.
- The authority will refund 70 per cent of the deposit.
How will this move benefit builders and home buyers?
Big relief for realtors: After the sluggish real estate market in the national capital region what comes as consolation for realtors, if they are allowed to surrender these land parcels, they will be able to use the refunded money in a more productive manner to complete the sick projects. Even they can utilise the cash on their market planning to sell inventory.
Home buyers benefit: In the past, there have been several cases when the buyers who have invested in housing project in NCR and possession dates have been delayed by the developer. In some cases, the builder fails to deliver the project in specified timeline due to financial stress. This has nearly affected lakhs of home buyers who booked flat in Noida. Now with the enforcement of exit policy, builder can complete the project which is nearing completion and can give possession of flats on time.