Greater Noida developers demand for no interest period for 4 years

September 18, 2017

The Greater Noida authority has formed a committee headed by the B.K Tripathi, Additional CEO (ACEO) to study demand of builders of about 41 projects for a no interest period from 2011 to 2015.The developers are demanding an interest waiver for realty projects which were delayed due to litigation, farmer agitations, and other genuine reasons.

Chief Executive Officer Debasish Panda has directed all departments including IT, institutional, commercial, residential and industrial to provide a fact sheet of all projects, which were delayed and due to what reasons. “ Once we have all the facts, we will categorize the reasons,” said Tripathi. “ Those cases, which can be approved by the CEO, as in cases of stay by courts will be addressed at CEO level. Other cases will either be referred to the Greater Noida Board or to the state government for further action,” he explained.

The official further said that one meeting with developers was held on Friday regarding the issue. “ Next week also we will be meeting the developers in groups of ten to hear their individual demands,” Tripathi said. “ Once we have all details and information in place, the committee will submit its report to the CEO after which a policy regarding the no interest period could be drafted,” he added.

If the & lsquo Zero Period' is declared for the time when construction was disrupted due to litigation or other reasons, a builder will not need to pay interest on the defaulted principal amount. “ But the interest waiver for the Zero Period will be given only to genuine cases,” ACEO said.

In April 2011, the farmers in Greater Noida West, earlier known as Noida Extension had challenged land acquisition in the Allahabad high court. The dispute in some cases between the authority and farmers were settled in 2012. Many others were resolved by 2015 while some are pending in the high court and the Supreme Court even today. The committee will be looking into the specific period when the construction in a particular project was affected and thereafter take a decision, officials said.