NOIDA: Greater Noida Industrial Development Authority (GNIDA) has decided to grant partial occupancy and completion certificates to developers who have made advance payments under the UP government’s rehabilitation policy for stalled projects. The decision, issued on Tuesday, will provide immediate relief to thousands of buyers who have been waiting for years for their flats, as well as developers struggling to complete projects stuck in a financial and bureaucratic deadlock.
Under the latest decision, developers who have already deposited 25% of their recalculated dues – including the two-year zero period granted for the Covid pandemic – and made further payments for the remaining 75% will now be eligible to receive certificates in direct proportion to the amount paid.
For example, if a developer has paid 40% of the total dues, certificates are actually issued for 40% of the project’s units. The aim of this move is to free up possession for homebuyers whose flats are ready but are held up due to procedural delays.
The decision, which follows the Authority’s 140th board meeting in July, addresses a long-standing sticking point. Previously, under the state’s rehabilitation policy, which was announced in December 2023, developers had to pay 25% of their recalculated dues upfront and the rest in installments.
After the initial payment was made, the developers received a dues-free certificate (NDC), allowing them to proceed with construction and apply for completion. However, when applying for occupancy or completion certificates, developers faced delays in securing NOCs from multiple departments: fire safety, environment, water, electricity, planning and architecture. The process often took longer than six months, during which deadlines for further payments passed, leaving developers with only partial payments to make.
As a result, the planning department would require a new NDC to process the occupancy applications. But if subsequent installments were not paid in full, the building department could not issue a new NDC, delaying the issuance of completion certificates and, crucially, the handover of houses to buyers – even when construction was almost complete and most contributions had been paid.
The NCR and Western UP chapters of the Confederation of Real Estate Developers’ Associations of India (CREDAI) have highlighted this issue in a representation to the Authority.
“After availing the related benefits and paying 25% dues to the respective authorities, our member developers have also successfully completed the ongoing construction works of such projects and are seeking approval of related occupancy certificates from your authorities,” Dinesh Gupta, president of Credai Western UP, wrote on May 25. He added that the refusal to issue new NDCs until full payment of subsequent installments prevented the registration of tripartite sublease deeds, thereby blocking legal possession for homebuyers.
Credai further warned that continued delays would have a cascading effect on the real estate market and government revenues. “Failure to register tripartite sublease deeds would have serious implications for further investments in Noida and Greater Noida region and also lead to loss of revenue for the authorities, state and central governments,” the letter said.
The association proposed allowing registration and possession of subleases in proportion to dues paid, and proposed provisional occupancy certificates valid for 90 to 120 days to help developers raise money from homebuyers for the remaining dues.
Officials said the decision balanced the interests of homebuyers and developers while ensuring the Authority’s financial recovery.
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