Personal Finance »PF News»PF News Details
PF News Details
Back

Jaypee, Orris,VGA and more: 17 Greater Noida housing projects cancelled

Karan Choudhury / New Delhi 21 Apr 17 | 08:54 AM

Representative image

Building plans of 17 projects from six builders have been cancelled by the governing authority in the Greater Noida area. 

Widgets Magazine

Jaypee Infratech, Gaursons, Orris Group, VGA Developers and Ajnara Group are all affected. The Yamuna Expressway Industrial Development Authority (YEIDA) had approved the layout plan but its planning department raised some objections in the building plans of these projects, said sources.  Since new building plans had not been given for approval, the Authority cancelled these 17 projects.

Sector experts say 105 projects of 45 developers have stalled in the Greater Noida area over the past seven years, with at least 5,000 home buyers caught in between and petitioning the courts. “Of the 17 projects which have been cancelled, the sale of properties in some had already happened. This would leave these buyers in the lurch. A solution should be provided," said Parveen Jain, president of the National Real Estate Development Council, which represents realtors.

Some, however, say this decision by YEIDA was needed and would have a positive impact in the longer run. It would prepare the sector and its consumers for the strict measures that would be in place once the Real Estate Regulation & Development (Rera) Act of 2016 is enforced. “These projects got cancelled as they did not get the requisite approvals. This shows how strict the authorities are becoming about all these things, a preamble to Rera implementation. These moves will help in getting customer confidence back. After Rera kicks in, such projects would not be allowed," said Samantak Das, chief economist at Knight Frank India. YEIDA says it has told the Jaypee group to pay the total dues of Rs 600 crore by August for the 1,000 hectares allotted to it. “We have given one month to Jaypee, till May 15, to pay 15 per cent, which is Rs 90 crore. We have directed them to clear the remaining amount by August-end," Arun Vir Singh, the Authority’s chief executive, told journalists. 

Earlier, YEIDA had asked Jaypee to pay 15 per cent of the Rs 600 crore by April 15. The group had paid only Rs 10 crore of the Rs 90 crore to YEIDA and sought four months for the total dues. The group has developed a sports city on part of the allotted land. In all, builders have failed to pay Rs 2,600 crore in land dues to the Greater Noida authority, pleading a slowdown in sales. On April 15, YEIDA had cancelled five housing projects of Jaypee Infratech in Sports City East, saying the developer appeared to have sold these to buyers without getting building plans approved.

Stalled dreams

105 projects of 45 developers in the past seven years

5,000 home buyers caught in between

Building plans of 17 projects from six builders have been cancelled recently

Widgets Magazine

Sensex

Company Price Gain (%)
Wipro294.051.00
Coal India253.900.12

Poll

Given the current crisis at Infosys, what would your investment strategy in the company's stock be?



Online Portfolio

You can create Online Portfolio here using the below button.

Widgets Magazine