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
Related News & Articles
The Greater Noida Industrial Development Authority (GNIDA) has decided to re-launch the One Time Settlement Scheme (OTS) to settle land dues. Under the amnesty sche...
Recently posted . 1K views . 2 min read
The Allahabad High Court has held that the Ghaziabad Development Authority (GDA) cannot levy development fees in context with elevated roads or metro stations, from...
Recently posted . 507 views . 1 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 . 1K views . 1 min read
Earlier, officials had divided the city into four zones and proposed to increase the land rates in zones A, B and C. Land rates of sectors under zone D would not be...
Recently posted . 460 views . 2 min read
We recently announced that Golden I will now be Managed and Operated by Ocean Infraheights Pvt. Ltd.,
Recently posted . 989 views . 1 min read
Trending News & Articles
Ocean Infraheights unveils Golden I, a premier Mixed Use development in Greater Noida West, offering office spaces, Retail, Corporate Suites and residences with a...
Recently posted . 1K views . 3 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 . 1K views . 1 min read
The Greater Noida Industrial Development Authority (GNIDA) has decided to re-launch the One Time Settlement Scheme (OTS) to settle land dues. Under the amnesty sche...
Recently posted . 1K views . 1 min read
We recently announced that Golden I will now be Managed and Operated by Ocean Infraheights Pvt. Ltd.,
Recently posted . 989 views . 0 min read
More in Real Estate
Houses near the workplace or walking distance from a Metro, houses with modern glass doors sans grills, and essential amenities rent faster
Recently posted. 473 views . 0 min read
When it comes to the temple or prayer area in a home, there are several Vastu Shastra guidelines that should be followed, to ensure maximum positive effects for the...
Recently posted. 497 views . 1 min read
While planning on investing in real estate, people are now not sure whether to buy a ready-to-move-in house or to buy an under-construction property. Know which one...
Recently posted. 529 views . 1 min read
Recently posted . 609 views
Recently posted . 1K views
Recently posted . 1K views
We look at why home buyers should buy a separate life insurance policy to cover the home loan liability and how to go about it
Recently posted. 624 views . 0 min read
Office space leasing volume touched an all-time high of 60.6 million square feet in 2019
Recently posted. 464 views . 0 min read