Noida Authority offers relief to buyers, introduces new policy decision to issue completion certificates

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In order to find a solution of current logjam in the Builder-Buyer issue, Noida Authority has decided to relax its norms for issuing completion certificate to those projects which have pending dues of Authority.
The scheme would be applicable to only those projects which have all other necessary documents for obtaining completion certificate such as fire clearance, environment clearance etc. and were only lagging because of pending authority dues.

Half Project to Get Completion Certificate on 10% Payment by Builders

Under this new scheme notified by Noida Authority, the builders who have pending dues of Noida Authority and are unable to obtain completion certificate and in-turn can’t give possession to their respective buyers may now have a way forward by getting so with a 10% payment.
Speaking on this new method of payment Noida Authority CEO Amit Mohan Prasad said, “On 16th and 18th of August we had a meeting with different buyers. Based on the major suggestions received from the fraternity, pattern of issuing completion certificate has been changed. Considering cash flow issues of buyers that in-turn is adversely affecting builders, we have decided to introduce this new pattern of making payments and obtaining completion certificate”.

In this policy decision builders can obtain completion certificate for 50% of towers of their whole project by depositing 10% of amount that they have as authority dues. Initial sequence of tower will be prioritized to issuing these completion certificates.
Explaining the same authority officials said, “If a builder applies for completion certificate under this scheme and he has for example 10 towers with sequence number 1 to 10 than towers 1 to 5 will be given completion initially. Thereafter if there are 400 flats in these towers and the due on builder was 100 crore he has to pay 65 crore next which will be equally divided on basis of number of flats which in this case will come around 16.25 lakh per unit. Once this amount is paid, sub-leasing will be allowed”.

65% Payment to be collected before sublease:

Under this new pattern Noida Authority will thereafter collect next 65% payment before sub lease of the units can be done. This new completion certificate methodology is expected to offer direct relief to buyers who might get possessions of their flats soon.

Over 15,000 Buyers to get benefited

Authority officials expect that around 15,000 to 20,000 buyers may get benefit of this new policy. In recent past around 39 builders have applied for completion certificate out of which 16 have been rejected due to varied reasons and rest were under process. After introduction of this new payment method it is being expected that many builders will be able to obtain completion certificates. This scheme will only be applicable on group housing projects and will come into implementation from 1st September and will go onto 30th November.


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