Senior officials from the Noida authority have revealed that they are currently facing challenges in collecting outstanding land cost payments from owners of commercial projects. The majority of these project owners have resorted to filing for bankruptcy and are now undergoing trial before the National Company Law Tribunal (NCLT). It has been reported that the authority is owed a substantial amount of Rs.8,300 crore by the top ten defaulters.
These ten prominent real estate developers, who were initially granted land to construct commercial or mixed-use buildings with both residential and commercial spaces, ended up defaulting on their installment payments.
The defaulter realtors have either obtained stay orders on recovery from the Allahabad high court or are currently undergoing trial at the NCLT, according to authority officials. This grants them immunity from any action by the authority.
One of the Noida authority official said, “We have asked the legal department to study the court cases in great detail and find out ways to recover the dues because the authority is facing a huge losses with regards to these commercial projects, the work on which has currently stopped and the owners have stopped payment of the land cost dues since the past many years. The authority plans to get the stay orders from the court lifted. The authority’s legal department will also be told to seek permission from the NCLT to recover the dues.”
The largest defaulter is a commercial project in Sector 94 with outstanding dues of over Rs.2,100 crore. The owner has obtained a stay order from the high court. The second largest defaulter is a commercial project in Sector 124 with a debt of around Rs.2,000 crore.
The NCLT recently approved a petition filed by a company that has invested funds in the Sector 124 project. The third highest defaulter possesses a commercial project in Sector 16B, with the real estate developer owing the authority a sum of Rs.1,450 crore.
Lokesh M, chief executive officer of the Noida authority said,“We are looking into each case and we will take appropriate action. There are some cases where the authority will cancel the allotment and the undeveloped land will be allotted to a new developer.”
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