UP exempts stalled projects from penal interest, but with a rider

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Published: December 4, 2019 1:58:00 PM

According to officials, the new rail link is expected to connect the densely populated areas of Gaur City and Noida Extension to the Aqua Line and the adjoining Blue Line metro network, which connects Noida with Delhi.

NCR c, Siddharth Nath Singh, Satish Mahana, National Green Tribunal, Gautam Buddh Nagar, Real Estate Regulatory Authority, Noida, Noida real estateGiving details of the scheme, UP industrial development minister Satish Mahana said the benefit of zero-period policy will apply to builders who are set to provide homes to buyers by Jun 2021.

In a move that will provide huge relief to the builder lobby in NCR Noida and Greater Noida, the Uttar Pradesh cabinet on Tuesday decided to exempt builders from penal interest and other dues for the period when their project is stalled due to litigation if they pass on this benefit to the buyers.

Addressing mediapersons after the cabinet meeting state government spokespersons Siddharth Nath Singh and Shrikant Sharma said the cabinet has approved zero period benefits to the lands stuck in litigation in NCR Noida and Greater Noida. Under this scheme, the government will not take any surcharge from the builders, who are expected to then pass on the benefit of this rebate to the buyers.

Giving details of the scheme, UP industrial development minister Satish Mahana said the benefit of zero-period policy will apply to builders who are set to provide homes to buyers by Jun 2021.

“The decision has been taken to protect the interest of homebuyers and it is based on the recommendations of various committees and the UP Real Estate Regulatory Authority (Rera),” he added.

It may be mentioned that the policy was first introduced in 2011-12 in Greater Noida to help the developers whose projects were affected owing to the farmers’ agitation.

The zero-period policy specifies that if a housing project was stalled due to a stay order by any court or the National Green Tribunal (NGT) or Rera delayed possession of deed execution, then the affected period would be considered as zero.

The policy also undertakes a situation wherein a developer could not begin the project construction owing to the absence of an approach road or the authority’s failure to acquire land at the time of handover. The real estate developers, in such cases, are exempted from penal interest and dues.

The state government expects one lakh new homes to be constructed by that time. UP govt gives nod for Rs 2682 cr, 15-km metro extension line from Noida to G Noida. The Uttar Pradesh government has also approved the extension of the Noida Metro Aqua Line to Knowledge Park-5.

The 14.95 km long extension metro link will run between Noida Sector 71 and Greater Noida Knowledge Park V, connecting the twin cities in Gautam Buddh Nagar district adjoining Delhi and will be constructed at an estimated cost of Rs 2,682 crore.

The decision in this regard was taken at a cabinet meeting chaired by chief minister Yogi Adityanath here on Tuesday.

“The cabinet has approved metro corridor project worth Rs 2,682 crore between Sector 71, Noida and Knowledge park, Greater Noida. It will be 14.95 km long,” Industrial development minister Satish Mahana told reporters, adding that the project is expected to be completed in three years.

According to officials, the new rail link is expected to connect the densely populated areas of Gaur City and Noida Extension to the Aqua Line and the adjoining Blue Line metro network, which connects Noida with Delhi.

In January this year, the Aqua Line of the metro was inaugurated which connects Noida and Greater Noida, covering a distance of almost 30 km.

At present, UP has metro rail connectively in Noida, Ghaziabad and Lucknow, while work on the Kanpur metro project has also begun.

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