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The Noida Authority has announced strict action against real estate developers who have failed to comply with the Uttar Pradesh government’s policy on stalled housing projects. According to officials, the authority will attach and auction the assets of defaulting builders and take other measures under the policy to help homebuyers complete their long-pending property registrations.
Officials said that very few developers, out of the 57 projects identified under the policy have followed its provisions properly to deliver homes to buyers. So far, 3,724 property registrations have been completed, while registries for 5,758 apartments remain stuck due to developers’ failure to clear their land cost dues.
“Noida Authority will take stern action as per the rules of the UP government’s stalled housing policy,” said Lokesh M, CEO of the Noida Authority. “Some developers paid only part of their dues, around 25% and later stopped making payments or ignored notices. We will attach and auction their assets and take other steps to ensure buyers can finally get their flats registered,” he added.
Policy Aimed at Helping Homebuyers
The Uttar Pradesh government introduced the stalled housing project policy on December 21, 2023, to address thousands of unfinished housing projects across the state. Under the policy, developers were offered interest waivers if they paid 25% of their total dues upfront and the remaining 75% within three years.
The policy’s goal was to help developers’ clear dues and enable homebuyers—many of whom have fully paid for their flats—to complete registration and take legal possession of their homes.
Many Developers Still Non-Compliant
However, officials say a large number of builders have failed to comply with the policy terms. The Noida Authority is now planning to withdraw the interest waivers granted earlier to such developers.
According to the authority’s latest review:
- 10 housing project promoters have not paid any land cost dues despite committing to do so.
- 25 developers have made only partial payments.
- 35 developers paid the initial 25% but did not pay the remaining dues as required by the policy.
Out of the 57 stalled projects, only a handful have shown progress. “Most developers are not following the repayment terms, so we are left with no choice but to act firmly,” said an official.
Focus on Protecting Homebuyers
The authority’s main aim is to protect homebuyers who have been waiting for years to get legal ownership of their homes. Many buyers have already made full payments to builders but have been unable to register their properties due to the developers’ financial defaults.
A homebuyer from one of the affected projects told Hindustan Times: “We have already paid the full amount for our flat, but we still can’t get our registry done because the builder hasn’t cleared his dues. The authority must take strong steps to recover these dues so we can finally get ownership.”
Way Forward
Officials said that by attaching and auctioning the assets of defaulting developers, the authority hopes to recover pending dues and clear the way for pending property registrations. The move is also expected to revive stalled housing projects, bring financial discipline among developers, and restore trust among homebuyers.
If executed effectively, the action could unlock thousands of long-delayed registries and bring relief to families who have been waiting years to move into their homes.
