New Delhi: The New Okhla Industrial Development Authority (Noida) plans to tweak transfer rules for land bought from it so that land can be sold even before construction is carried out on it. Current rules say a plot of land bought from the Noida authority can be sold only after 50% of the construction on it is completed.
“We are looking at relaxing the rules so that developers can transfer plots of land even before construction is completed if they are finding it difficult to implement their project,” Lalit Srivastava, chairman of Noida authority, said. “We are doing this because with the slowdown in the real estate sector, a lot of developers are finding it difficult to construct properties on the land bought by them.”
Easing norms: The Noida authority is looking to ease the rules so developers can transfer plots even before construction is completed. Harikrishna Katragadda / Mint
Land transfers, however, will only be allowed only if the buyer clears all dues to the authority, Srivastava said.
Land to build industries, institutions and group housing projects can be sold by the new rules. “This is meant to be a bailout for developers,” Srivastava said.
This will add to several other measures announced by the Uttar Pradesh government to help realtors who are building projects in the state. The government has decided to reschedule dues developers have towards payment for land they had bought earlier. Developers will now get an additional two-three years to repay.
The government is also looking to give an exit option that will vest developers with land in proportion to the amount paid to date, together with a penalty. Several developers have bought land from the Noida authority in the past two-three years. Last year, Business Park Town Planners Ltd clinched the largest land deal in India by value when it won a bid for 95 acres meant for commercial activities for about Rs5,000 crore.
Other developers such as Unitech Ltd, Omaxe Ltd and Parsvnath Developers Ltd are also building various projects in the Delhi suburb.