Eyeing Rs 4,450 crore, YEIDA to offer OTS scheme for recovering dues

The Yamuna Expressway Industrial Development Authority (YEIDA) is going to launch a one-time settlement (OTS) scheme to recover Rs 4,450 crore in dues from 14 builders. Subject to clearance, the OTS scheme will pave the way for at least 10,000 registrations.

Out of the Rs 4,457 crore that YEIDA wants to collect, Rs 2,753 crore was for land premium, Rs 1,408 crore additional compensation for farmers and Rs 296 crore lease rent. If the scheme is comes into effect, it will help the builders save around Rs 1,000 crore in penal interest.

Moreover, the move will primarily felicitate the completion of projects, issuance of occupancy and completion certificates and execution of registries, which has created anxiety among thousands of homebuyers across NCR. Looking for different options to resolve the stalemate around builder-buyer issues, YEIDA has now planned to go ahead with the one-time payment scheme.

YEIDA CEO Arun Vir Singh said, "In a bid to clear dues from builders, we are planning a one-time payment scheme. But, before going forward with the plan, we will consult the developers. We want more and more builders to volunteer and pay. This will clear the hurdles around projects," he added.

Big defaulters on YEIDA's list include Supertech, SDS Infracon, Sunworld Infrastructure, Orris Developers, Logix, ATS Realty Green Bay Developers and the housing projects where registries of flats were stuck were in Sectors 22D, 22A and 26A.

In some of the housing projects, buyers have even been handed possession of their flats, but the process of registration is still pending due to the mounting dues that the developers. For long, builders' associations have been urging the Uttar Pradesh government to form a scheme similar to the one announced by the Haryana government to settle land dues.

In 2017, the Haryana government omitted 75% interest and took only 25% interest along with principal amount from realtors, thus helping developers to clear their dues.

Builders such as the Confederation of Real Estate Developers' Association (Credai) and the National Real Estate Development Council (Naredco) have appealed to the authorities that without such a settlement scheme, group housing projects will not be delivered or revived.

"It looks like the developers are not interested in clearing any dues. Even if the penal interest part is cut, I am afraid that many builders will pay the amount. The, what about the projects that are in insolvency? The YEIDA must focus on flat-wise registries so that the builders keep clearing the dues in phases." Kailash Chandra, president of Supertech Upcountry Buyers' Association, told TOI.