The Yamuna Expressway Industrial Development Authority (YEIDA) is in the news for its plan to extract a whopping Rs. 4500 crores from builders as pending dues for their respective projects in the area. This move has raised concerns among builders and property buyers, who fear that the cost of real estate in the area will go up. However, YEIDA has defended its decision, saying that the money will be used for the development of infrastructure in the area.
The registries have been a burning topic since forever in the real estate world. Many a time, it is seen that it is the home buyers that suffer due to incomplete registries. Collection of the pending dues will open the door for the home buyers to have their dream home.
Out of the total amount, Rs. 2,753 crores will be collected as land premium, Rs. 1,408 crores as additional compensation for farmers, and Rs. 296 crores as lease rent. The decision to extract this amount was taken after a recent board meeting of YEIDA.
The development of infrastructure in the area is long overdue. The Yamuna Expressway is a critical transport link between Delhi and Agra, and its development has been on the agenda of the Uttar Pradesh government for a long time. The collection of Rs. 2,753 crores as land premium is also justified, as the land in the area is valuable and has appreciated significantly in recent years.
This move will help the builders and their projects get their OC and CC and will most likely allow them to start with the registries of the properties. This has by far been the major thing of concern for the people who are keen on getting their dream homes.
How Will YEIDA Collect the Dues?
YEIDA has introduced a one-time payment scheme to collect the pending dues from the builders. The decision by the Yamuna Expressway Industrial Development Authority (YEIDA) to collect Rs. 4500 crores from builders has been met with mixed reactions. While some are concerned about the impact it may have on the real estate market, others believe that it could have some positive benefits. One such benefit is the savings that builders may make on interest payments.
Typically, builders finance their projects through loans from banks or financial institutions. These loans come with an interest rate, which adds to the overall cost of the project. The interest payments can be a significant burden on the builder, especially if the project is delayed, and the loan repayment is extended.
If they choose to go forward with the scheme, they do not have to pay the interests that they were supposed to pay earlier. This reduction in interest payments can be significant, and builders can save a considerable amount of money in the long run. These savings can be used for other purposes such as completing the project faster, enhancing the quality of construction, or even passing on the benefits to the customers in the form of lower prices.
List of some of the biggest defaulters Published by YEIDA
Some of the biggest defaulters in the list include:
- Orris Group (Sec-22D)
- Sunworld Infrastructure (Sec 22-D)
- ATS Realty (Sec 22-D)
- Supertech Township (Sec 22-D)
- Greenbay Infrastructure (Sec 22-D)
- Logix Buildestate (Sec 22-D)
- SDS Infracon (Sec 26-A)
- Supertech Ltd (Sec 26-A)
In conclusion, the decision by YEIDA to extract Rs. 4500 crores from builders has both positive and negative implications. While the development of infrastructure in the area is essential, the collection of additional compensation for farmers and lease rent may have a negative impact on the real estate market. YEIDA needs to ensure that the money collected is used efficiently and transparently for the development of the area, and that the interests of all stakeholders are taken into consideration.