Developed under the Akhilesh Yadav regime, and adopted by the new regime, PSP policy gives realtors an exit route from projects that they are unable to execute, as well as benefitting homebuyers who have been waiting, past the deadline, for the delivery of their flats.
Noida and Greater Noida Authorities have received more applications from several developers to boost their sick realty projects under the Project Settlement Policy (PSP). Officials said that they are considering these applications and soon these sick realty projects will be cleared.
Developed under the Akhilesh Yadav regime, and adopted by the new regime, PSP policy gives realtors an exit route from projects that they are unable to execute, as well as benefitting homebuyers who have been waiting, past the deadline, for the delivery of their flats.
Here's how it works. Suppose a developer has developed a project for Rs 1,000 crore, but now he wants to exit. Under PSP, he can surrender the land and retrieve his money minus 15 per cent which is the amount that was deposited with the authority before the project was started.
But the developer is not done yet. He then has to settle the dues of all home buyers who have invested in the project for the last four years, for example, and obtain NOC — No Objection Certificate from them. Once this is done, buyers with their money back, can look for another project to invest in.
Asked about the situation, a senior UP government official said that over 20 group housing builders of Noida, and 42 from Greater Noida, have applied for PSP in an attempt to end the impasse faced by homebuyers in getting possession of their homes.
Some of them include big names. Noida Authority's Officer on Special Duty Santosh Kumar confirmed that the real estate giant Wave Infratech's proposal for giving up land has recently been approved under PSP. He said the other developers' proposals for giving up land is also being considered.
Previous forfeit
Wave has surrendered about 110 acres of the 152 acres of residential-cum-commercial use plot allotted to it in 2011 in Sectors 32 and 25A at an allotment
rate of Rs 1,07,003 per square metre
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