The Yamuna Expressway has been on the radar of developers for a very long time. With huge land parcels available, many large housing projects have been launched in the region and thanks to its affordable pricing, these projects have attracted a lot of homebuyer and investor interest. But now, the Yamuna Expressway Development Authority (YEIDA) is cracking the whip and developers who have not paid their dues have reason to worry.
Yamuna Expressway Authority Talks Tough
Developers owe nearly Rs 3,200 crores as dues for acquiring nearly 100 acres of land from YEIDA between 2009 and 2012. In an effort to make it easier, the authority had allowed developers to make payments through EMIs, but at least 10 developers in the region have not yet cleared their total dues. And now, YEIDA has fixed the 30th of June, 2016 as the last date by which these developers will have to pay up or risk losing the plots allotted to them.
“The Yamuna Authority board has decided to give a last opportunity to the defaulters and has set a deadline. The defaulter has to pay 15% upfront and the rest will be in installments. The total default amount is Rs. 3,200 crores. If they don’t pay said amount upfront then the plot cancellation process will start.” warned Dr. Arun Vir Singh, CEO of YEIDA.
The Jaypee Group is at the top of the list of defaulting defaulters, owing dues of over Rs. 2,000 crores. The Jaypee Group is infamous for owning massive land parcels in the region, but has been struggling to deliver its projects. This makes it unlikely that the Jaypee Group at least will be able to pay its dues. YEIDA officials say Jaypee has been given enough time and has promised to take action against the group.
10 developers owe Rs.3,200 cr to Yamuna Authority. They have to pay 15% of total dues by 30th June to avoid plot cancellation @NDTVProperty
— Chanakya Bhatia (@Chanakya_Bhatia) May 24, 2016
Homebuyers And Investors Beware
While the authority talks tough, the defaulting developers have their own version to the story. They claim that land acquisition issues and farmer agitations have prevented them from completing work on the land in question.
“When we don’t have the land for development, then how we will pay the authority? We cannot pay for it until work at site happens. Every time I visit the site, there are farmers agitating and they don’t allow us to work. We have time till 30th June to figure out what can be done.” says Vidur Bhardwaj, Director of the 3C Group.
The big question that needs to be asked is, will this impact buyers and the investors in the region? The answer is yes. If developers fail to clear their dues on time, the authority might cancel the plot allotted to them, which might jeopardize the project. Our advice to customers is to check with their developer to see if land dues have been paid up. If they have not, then buyers should stand their ground and demand that the company takes care of it immediately.
Reporter : Chankya Bhatia, NDTV
Web Editor : Nikhil Narayan Sivadas, NDTV