Developers Across Noida Face Stern Actions for Stalled Projects

Noida, October 21: In a decisive move, the Noida Authority sealed three unsold shops in the Prateek Laurel society located in Sector 120 on Saturday. This enforcement comes as part of the government’s broader crackdown on legacy real estate projects that have failed to meet financial obligations, signaling rising pressure on defaulting developers.

The crackdown specifically targets Prateek Realtors India Pvt Ltd, which owes the Authority Rs 50.49 crore. Despite multiple warnings, the developer has only managed to deposit Rs 1.5 crore out of the required Rs 12.62 crore, which accounts for just 25% of the outstanding dues.

Years of Delays and Unregistered Properties

The Prateek Laurel project sits on a group housing plot (GH-1) in Sector 120, allotted on December 10, 2009, with the lease formalized on January 7, 2010. The residential project includes 1,530 flats, of which 290 flats remain unregistered, leaving homeowners without proper ownership rights.

This case is not isolated. Data reveals that Prateek Realtors is among 17 developers facing action for failing to comply with the government’s rehabilitation policy for stalled real estate projects. These developers have collectively deposited only Rs 57.03 crore against total dues of Rs 740.87 crore, affecting 6,152 unregistered flats across Noida.

Authority’s New Measures to Tighten the Noose

In a broader sweep, the Noida Authority issued final notices to seven additional builders earlier this month. These developers have yet to opt into the rehabilitation package, prompting officials to demand detailed inventories of unsold flats, shops, and unutilized portions of their plots.

Failure to comply will result in their cases being referred to the Economic Offences Wing (EOW), which will initiate recovery proceedings for the dues. Moreover, the Authority has announced its intention to seal vacant properties linked to non-compliant developers as part of its recovery strategy.

Negligence Leads to Internal Action

In a separate development, the Noida Authority has suspended an assistant on charges of negligence. The case in question involves MMR Saha Developers, who owe a staggering Rs 1,100 crore on a commercial plot in Sector 52. This internal disciplinary action reflects the Authority’s intent to ensure accountability within its ranks.

Covid Relief Package Underutilized by Developers

Amid these enforcement actions, Noida CEO Lokesh M has formed special teams to address the issue of stalled projects. These teams aim to encourage developers to take advantage of the rehabilitation package, which offers a two-year zero period covering the pandemic. The relief package includes interest waivers to reduce land dues, expedite flat registrations, and help homeowners finally gain legal ownership.

However, the low uptake of the package highlights a deeper problem of non-compliance among builders. Authorities remain committed to bringing errant developers into line, signaling more stringent measures in the days ahead.

Impact on Homebuyers and the Road Ahead

The prolonged delay in registering flats and resolving dues has left thousands of homebuyers in limbo, waiting years for ownership rights. Noida’s aggressive actions signal a shift toward greater accountability in the real estate sector, with developers being forced to align with government directives or face severe consequences.

With vacant property sealing operations already underway and cases being escalated to the EOW, the Noida Authority aims to recover outstanding amounts and ensure the completion of stalled projects. As pressure mounts, the coming months will likely see more stringent actions against defaulting builders, offering some hope to homebuyers awaiting long-overdue relief.