Noida Keeps Rehab Policy Open for Defaulting Builders

• Relief extended on a case-by-case basis, not automatic

• 57 stalled projects covered under the rehabilitation policy

• Only 60% of eligible flat registrations completed so far

Noida: In a move that could bring renewed hope to thousands of homebuyers, the Noida Authority has decided to keep the Uttar Pradesh government’s rehabilitation policy for stalled real estate projects in force, even for developers who have not deposited the mandatory 25% of recalculated dues.

The decision, taken at the Authority’s board meeting on January 3, marks a reversal of its earlier plan to withdraw policy benefits from non-compliant builders. Instead, the Authority chose to continue implementing the state government’s December 2023 order aimed at reviving long-pending housing projects.

However, officials made it clear that the extension does not amount to blanket relief. Noida Authority CEO Lokesh M said requests from developers who failed to meet the 25% payment deadline would be assessed individually. “There will be no automatic restoration of benefits. Each case will be examined and placed before the board, and any further concession will require explicit approval,” he said.

Status of Projects Under the Policy

According to details placed before the board, a total of 57 stalled projects are currently covered under the rehabilitation framework. These exclude projects by Amrapali, Unitech, and those pending before the National Company Law Tribunal (NCLT).

Among the eligible projects:

• 36 developers deposited the full 25% of their recalculated dues

• 11 developers made partial payments

• 4 developers gave consent but did not deposit any amount

• 6 developers neither submitted consent nor paid dues

So far, builders have deposited around ₹561 crore as part of the 25% requirement and partial payments. Including instalments, the total collection has reached ₹872 crore, officials said.

Policy Reversal After October Decision

The latest decision follows a policy flip-flop over the past few months. In its 219th board meeting held on October 3, the Authority had resolved to withdraw rehabilitation benefits in 19 cases where developers failed to deposit even the initial 25% by the October 24 deadline. Following that decision, the accounts department recalculated dues and issued fresh demand notices.

Now, the board has agreed to give such developers additional time. If any of them come forward to deposit the required amount, their cases will be reconsidered and placed before the board for a final call.

Litigation Still a Key Hurdle

The Authority also flagged that several projects remain entangled in litigation or revision proceedings before courts, the NCLT, or the state government. In such cases, officials said rehabilitation benefits would be considered only after pending matters are withdrawn or resolved.

Additionally, dues will be recalculated in line with government orders that allow zero-period relief for Covid-related disruptions and construction bans imposed by the National Green Tribunal (NGT).

Registrations Lag Despite Policy Push

Despite the continued policy support, flat registrations remain sluggish. Of the 21,034 unregistered flats across the 57 projects, permission for registration has been granted for 6,855 flats against 25% deposits. However, only 4,134 registrations—about 60% of the eligible units—have been completed so far.

Authority officials said regular registration camps are being organised and meetings held with developers to speed up the process. Builders, however, have cited poor response from buyers as a major challenge, pointing to lingering trust issues after years of project delays.

While the extended rehabilitation window offers a lifeline to stressed developers and waiting homebuyers alike, officials stressed that the policy’s success will ultimately depend on timely compliance, legal clarity, and improved buyer participation.