UP government gave two years of zero period discount to 15 developers

The Government of Uttar Pradesh has given a new relief to 15 real estate developers who have stayed due to restrictions on construction work within 10 km radius of Okhla Bird Sanctuary between 2013 and 2015. Under this exemption, these developers will get the benefit of zero period for two years. The step has been taken to speed up the real estate projects stuck in Noida, and the proposal was given by the panel formed by the UP government led by former CEO of NITI Aayog Amitabh Kant.

First zero duration profit and its effect

According to the Times of India, the first zero period exemption was implemented in December 2023 for projects where construction work was stopped due to Kovid-19 epidemic. Under this scheme, the arrears of Noida Authority were reduced from Rs 8,234 crore to Rs 1,865 crore, as 27 developers took advantage of this relief package. These developers had paid a total of Rs 502 crore, while the other 14 developers had paid a partial payment of Rs 32 crore.

Second round discount: expectation of lack of arrears

The second zero period exemption is expected to reduce the arrears of Noida Authority by about Rs 182 crore. Under this exemption, interest and punitive interest charged on the builders for a period will be waived when their projects stopped. The biggest benefit of this will eventually be for home buyers, as it is likely to accelerate residential projects and registration of flats stuck for many years. In addition, interest relief by builders can also benefit buyers.

Which developers will get relief?

Under the second round of relief, the dues of some major developers will be completely forgiven. These include Laurriat Buildwell, HR Oracle and AIMS RG Angel Promoters. The arrears of these developers were Rs 81 lakh, Rs 51 lakh and Rs 4 crore respectively, which will now be completely forgiven. Prateek Buildtech’s arrears will also decrease to Rs 26 crore. After the first round exemption, the builder still had to pay a premium of Rs 48 crore to the Noida Authority, but after getting relief of Rs 15 crore, the outstanding dues of AIMS promoters are now Rs 38 crore.

Status of other developers

Some other developers such as Skytech Construction and SDS Infratech are also relieved. Skytech Construction was relieved of Rs 10 crore, after which it will now have to pay Rs 12 crore. The arrears of SDS Infratech are now Rs 50 crore after a relief of Rs 25 crore. The ATS Township was relieved of Rs 35 crore, after which its revised arrears are now Rs 9.6 crore.

Pre -zero period profit and adjustment

The Noida Authority has clarified that any former zero period profit related to NGT has been adjusted against the current two -year discount, so some developers did not get additional relief. Sivitech developers, who have already paid their dues, were allowed to execute lease deeds for 27 pending flats, but financially he did not benefit from this zero period. Sunworld developers had also earlier got the benefit of zero period and were also tested for the second round, but they were not eligible for any additional relief in this round.

Benefits and Effects of Zero period discount

The main objective of zero period exemption is to re -speed up projects that stopped for various reasons. The biggest advantage of this will be to investors and home buyers of projects whose assets were stuck for years. This will accelerate the registration of residential projects, and home buyers will not have to wait for a long time for the registry of their flats. Due to this relief, the dues received by the authority will also decrease, which will also improve the situation financially.

NGT restrictions and their deadline

The NGT (National Green Tribunal) initially banned construction work within 10 km radius of Okhla Bird Sanctuary on 14 August 2013. Later, these sanctions were tightened by October 2013, so that Ocupance Certificate (OCS) could not be issued without environmental approval. However, on 19 August 2015, after the central government set the region as an environment-sensitive sector, these restrictions were reduced to 100 meters, after which the restrictions on construction were effectively lifted.

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