30, 000 completed homes not handed over to the owners due to NGT’s order in NOIDA
There is some bad news for the developers in NOIDA as a National Green Tribunal(NGT) order is not allowing NOIDA Authority to handover completion certificates to projects within a 10-kilometre radius of the Okhla bird sanctuary.
There are more than 30,000 completed homes lying in the inventory of the builders and they have lost Rs 1,000 crore in interests and penalty to home buyers in the last seven months.
Vineet Gupta, director of the Ajnara group expressed his angst over this situation and mentioned that they have around 1,500 apartments waiting to be handed over to buyers. Projects of more than 45 developers including Jaypee, Amrapali, ATS, LogixBSE 9.97 % and Ajnara have been badly impacted by this order and the owners are demanding penalty due to the delay.
Getambar Anand, managing director of ATS Infrastructure and also the president of the Confederation of Real Estate Developers Association of India (Credai) expressing his dissatisfaction mentioned that NGT (National Green Tribunal) should allow the NOIDA authority to give them completion certificates. The state government has recommended only 100 metres around the sanctuary as the eco-sensitive zone, and these projects are not in that radius.
A senior executive at Amrapali Developers expressed his anguish over the entire situation and stated that all the developers have environment clearances for our projects. The company has 5,000 apartments ready for possession and they have sent the buyers the intimation for possession, however can’t handover their homes.
Real-estate developers have been facing a liquidity crunch over the past 12 to 18 months due to the slump in the market and the demand for real estate has been at an all-time low. According to the report of the property research firm Liases Foras, in the December quarter, unsold inventory rose to about 650,000 apartments, which would take more than 30 months to be sold. That number went up to 700,000 by the end of March 2014. The situation in NOIDA is putting more pressure on this sector and the developers are bleeding badly.
Source- The Economic Times
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