Greater Noida authority relaxes the penalty norms on builders of stalled projects
Monday, January 27, 2020 IST
The Greater Noida Industrial Development Authority (GNIDA) has temporarily suspended the penalty charges levied on delayed housing projects. As per the new norm, developers would be liable to pay only the principal dues, and the penalty amount has been deferred to a later date.
To reduce the financial burden on the cash-strapped builders, the Greater Noida Industrial Development Authority (GNIDA) has decided to temporarily forgo the premium penalty levied on the delayed construction of housing projects. Until now, the authority charged 10 percent of the premium penalty upfront and the remaining in instalment.
Typically, a premium is the cost at which GNIDA makes the land transfer to a developer. In case, the builder fails to complete the project within the stipulated time; the authority levies a penal charge of 1-2 percent per month. Besides, since the authority allocates the land parcels on a 90-year leasehold, it also imposes monthly rentals.
However, the recent announcement by the authority of relinquishing the penalty charges for a temporary period has offered immense relief to developers. According to Narendra Bhooshan, Chief Executive Office, GNIDA, developers are not only relieved from the hefty financial burden but also given a chance to avail funds from the financial institutions as soon as they clear the principal dues. However, they have to settle construction penalty at the time of the availability of the Occupancy Certificate (OC).
Besides, the Uttar Pradesh government also has extended benefits under the zero period policy and has ordered GNIDA to recalculate the penal amount for construction delays. Presently, the premium for land allotment and rent arrears form the most significant part of developers’ dues.
Related Topics
Trending News & Articles
If you think Wills are only for the rich, you are absolutely wrong. A Will is an essential part of any estate plan. It is the primary document for transferring your...
Recently posted . 6K views . 5 min read
Godrej Properties Ltd. (GPL) today announced that it has sold 340 homes with an area of more than half a million square feet on the first day of launch
Recently posted . 3K views . 1 min read
An intestate death often causes chaos with family often ending up fighting to get property. The succession act was created to resolve the impending chaos when a per...
Recently posted . 3K views . 2 min read
The unprecedented crisis put across by the COVID-19 outbreak has impacted the residential real estate significantly. Here are a few notable trends that are likely t...
Recently posted . 3K views . 1 min read
More in Real Estate
Delhi Development Authority (DDA) is set to come up with a Golf Course in Dwarka, in addition to 10 new sports complexes across the city.
Recently posted. 1K views . 0 min read
An intestate death often causes chaos with family often ending up fighting to get property. The succession act was created to resolve the impending chaos when a per...
Recently posted. 3K views . 2 min read
Foreign funds and expertise can help stuck projects, but existing stakeholders will have to recognize deep losses.
Existing s...
Recently posted. 1K views . 1 min read
Recently posted . 3K views
Recently posted . 2K views
Recently posted . 3K views
Office spaces are gradually transforming from mere physical spaces for the workforce and assets, to spaces that are dynamic and act as enablers for an organisation&...
Recently posted. 785 views . 1 min read
To win back the confidence of real estate sector, the housing ministry has launched an online platform to facilitate homebuyers in selecting and purchasing genuine ...
Recently posted. 1K views . 2 min read