Amid the protest by homebuyers affected in the Jappee and Amrapali projects, the District Magistrate of Gautam Budh Nagar held a joint meeting with the developers of the area on Wednesday, during which the DM emphasized the need to maintain the law and order situation in the city in the wake of homebuyers’ protest. Developers were also told to communicate their strategy to homebuyers to remove their doubts and boost their confidence.
Stating that the concerned buyers should receive their flats as soon as possible, the DM – according to sources – said that the developers should inform the buyers about their plans about how and when will they give them the possession of their flats.
“The CREDAI members informed the DM that the delay is happening currently owing to the scarcity of funds. The association has also requested the authority to waive the interest of the ‘zero period’ and give relief on multiple interest slabs. This will reduce the pressure on developers and give them an opportunity to arrange funds. Once there is availability of funds, developers will focus on delivery of flats,” said Suresh Garg, CMD, Nirala World and Secretary, CREDAI Western UP.
It may be noted that zero period is the time when no interest is charged on the defaulted principal amount. “Normally when a developer defaults, the authority charges 12% interest on the principal amount. The Greater Noida Authority had declared zero period when construction was disrupted for a period of time in Greater Noida West due to litigation filed by farmers,” says Ashudeep Batra, ED, Exotica Housing.
Sources, however, said there is still no clarity whether the authority will waive the interest of the ‘zero period’ to give some relief to developers.