A recent inquiry by the Noida Authority revealed that many of the developers in the city do not pay the amount to the Authority. According to the Authority nearly 50 developers are default payers.
Estimating the amount Noida Authority loses due to the default payment of the builders, the Authority officials might have become giddy. Recent excavation by the Noida Authority into the payment of the developers revealed that the Authority has lost Rs.3000 Cr in forms of default payments.
It was BSP government who introduced the system of providing lands to the builders after they have paid 10% of the total amount. Though the system was meant to help the small – scale developers, the builders have stopped the repayment meanwhile.
With the aim to make the default developers pay the amount, Noida Authority has decided to amend the existing scheme. Sources close to the Authority revealed that the scheme will be amended in the upcoming board meeting.
Among the list of default developers, some reputed and bigger names are also included. Mr. GP Singh, Finance controller of Noida Authority, condemned the builders by saying that they are violating the laws by not paying the due amount to the Authority.
The system was introduced in 2008, during the regime of BSP, with an aim to make Noida a better home destination. BSP government expected that by making the scheme the city would be able to provide some affordable homes to the people. Their hope went in vain as the builders have stopped paying the amount prescribed in the agreement.
As per the scheme the builders could lease the land for developing real estate projects on one condition that the balance amount they have to pay in installments. However the Noida Authority has sent notices to the default developers for paying the defaulted amount. The Authority further warned the default developers that their land will be taken back in case if they act according to the notice.
