Noida: Comptroller and Auditor General (CAG) has put together a comprehensive map of what is wrong with Noida’s prized real estate scheme – Group Housing Society. The legacy of years of lapses and gaps in the allocation processes is a serious problem that home buyers Find yourself now.
The CAG said that out of the total 113 projects undertaken during the period under audit (2005-06 to 2017-18), only 63 per cent (71) were either completed or partially completed. and out of the approved 1.3 lakh flatsOccupancy certificate has been issued for only 44%.
Though in terms of development, the period 2009 to 2011 was the best for real estate developers in the city, this was the time when things went south for buyers. Noida Authority The financial eligibility criteria were relaxed while allotting plots for group housing, but at the same time, started offering larger plots.
After changing its rules to make allottees pay less upfront, citing slowdown in the western world, the Noida authority started accepting bids from companies with low net worth. As a result, a plot worth around Rs 500 crore was being offered to a company with net assets of Rs 75 crore for an upfront payment of Rs 50 crore. CAG Report Points out that builders with limited financial capacity were able to occupy large plots, which was one of the main reasons for a large number of housing projects running behind schedule.
Originally, the Noida Authority used to take 30% of the land premium in advance, during 2009-2011 the rules were revised, wherein land was allotted only on payment of 10% premium. The remaining 20% was sought within 60 days of allotment. The CAG report throws light on a case of allocation made in April 2007. Despite not paying more than 30% for more than four years, the Noida authority did not take any punitive action against the allottee except by issuing notices, thus condoning the action of such builders.
A clause to allow the exit of the principal member by reducing its shareholding from 51% to 26% was also introduced. The rule change allowed minor players to take over large land parcels that were awarded based on the participation of the dominant member. The CAG has asked the state government to take strict action against the Plot Allotment Committee (PAC), a team of senior authority officials, which scrutinized builder’s applications and recommended allotment of group housing plots. The PAC consisted of Officers on Special Duty, AGM (Group Housing), Controller of Finance, Chief Project Engineer, Chief Architect Planner, Chief Legal Advisor and Administrative Officer.
The CAG also pointed out how allowing sub-division of plots contributes to group housing disturbances, leaving large land parcels in the hands of players who did not have the capacity to execute the project.
The auditor noted that sub-division of plots during recession was allowed as a one-time relief measure for allottees in financial distress till March 2011. However, the CEO of Noida Authority has embedded the “one-time concession … as a permanent facility” in his brochure starting November 2009 and adding to the difficulties not only the existing allottees are facing, but All potential allottees are also to be benefited”, the audit report said.
The report also observed that the Noida authority made several allotments to group companies of Amrapali and Unitech, which were defaulting in payment of dues for earlier allotments, which stood at Rs 9,828.49 crore as on March 31, 2020, the auditor said. said. Both Amrapali and Unitech have a large number of pending flats, which require the intervention of the Supreme Court.
The CAG said that out of the total 113 projects undertaken during the period under audit (2005-06 to 2017-18), only 63 per cent (71) were either completed or partially completed. and out of the approved 1.3 lakh flatsOccupancy certificate has been issued for only 44%.
Though in terms of development, the period 2009 to 2011 was the best for real estate developers in the city, this was the time when things went south for buyers. Noida Authority The financial eligibility criteria were relaxed while allotting plots for group housing, but at the same time, started offering larger plots.
After changing its rules to make allottees pay less upfront, citing slowdown in the western world, the Noida authority started accepting bids from companies with low net worth. As a result, a plot worth around Rs 500 crore was being offered to a company with net assets of Rs 75 crore for an upfront payment of Rs 50 crore. CAG Report Points out that builders with limited financial capacity were able to occupy large plots, which was one of the main reasons for a large number of housing projects running behind schedule.
Originally, the Noida Authority used to take 30% of the land premium in advance, during 2009-2011 the rules were revised, wherein land was allotted only on payment of 10% premium. The remaining 20% was sought within 60 days of allotment. The CAG report throws light on a case of allocation made in April 2007. Despite not paying more than 30% for more than four years, the Noida authority did not take any punitive action against the allottee except by issuing notices, thus condoning the action of such builders.
A clause to allow the exit of the principal member by reducing its shareholding from 51% to 26% was also introduced. The rule change allowed minor players to take over large land parcels that were awarded based on the participation of the dominant member. The CAG has asked the state government to take strict action against the Plot Allotment Committee (PAC), a team of senior authority officials, which scrutinized builder’s applications and recommended allotment of group housing plots. The PAC consisted of Officers on Special Duty, AGM (Group Housing), Controller of Finance, Chief Project Engineer, Chief Architect Planner, Chief Legal Advisor and Administrative Officer.
The CAG also pointed out how allowing sub-division of plots contributes to group housing disturbances, leaving large land parcels in the hands of players who did not have the capacity to execute the project.
The auditor noted that sub-division of plots during recession was allowed as a one-time relief measure for allottees in financial distress till March 2011. However, the CEO of Noida Authority has embedded the “one-time concession … as a permanent facility” in his brochure starting November 2009 and adding to the difficulties not only the existing allottees are facing, but All potential allottees are also to be benefited”, the audit report said.
The report also observed that the Noida authority made several allotments to group companies of Amrapali and Unitech, which were defaulting in payment of dues for earlier allotments, which stood at Rs 9,828.49 crore as on March 31, 2020, the auditor said. said. Both Amrapali and Unitech have a large number of pending flats, which require the intervention of the Supreme Court.
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