Yeida offers waivers to developer SDS Group to provide relief to homebuyers

GREATER NOIDA: The Yamuna Expressway industrial development authority (Yeida) on Friday said that it will offer waivers on interest imposed on the realty firm SDS Group that has delayed the delivery of the project, thereby causing distress to the homebuyers.
The Yeida will offer waivers as per the provisions of the Uttar Pradesh government’s December 21, 2023 policy meant for the “stalled legacy” housing projects.
“We are trying to provide relief to homebuyers. We will do recalculation of the developer’s dues using the provisions of the state government’s rehabilitation package for stalled projects, giving a two-year zero period due to the Covid pandemic. We want to do this so that the homebuyers get benefited and get possession and registry done of their properties,” said a Yeida official, requesting anonymity.
At least 1,400 homebuyers, who had invested in SDS Infracon’s integrated NRI Township project, spread across 125 acres of land in YEIDA’s Sector 26A 14 years ago, are still awaiting possession of their homes.
The registry of about 600 plot buyers was executed in 2011-2015 by the builder, claiming completion of internal development works like construction of roads, drains, and other basic facilities.
But the township, which boasted of having medical and educational institutions and a full-fledged commercial complex within its premises, still lacks basic facilities including electricity and water connections. Some of the plot buyers, who constructed their homes, are living there with the help of inverters and solar panels.
Last month Yeida announced that it would allow map approval for construction of those 600 registered homebuyers if they were willing to pay the 64.7% additional farmer compensation.
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But, in the absence of basic facilities and high rate of additional compensation ( ₹7,500 per sqm), the plot buyers are yet to approach the authority.
Buyers said that the farmer compensation was ₹1,770 per sqm in 2011.But as the builder did not pay the same, it has swelled to ₹7,500 due to imposition of interest and penal interest.
Pranay Kathuria, a plot buyer, said many of them took loans to buy plots and now they are compelled to live in rented houses and also pay bank EMIs.
“We did not receive any demand from the builder regarding the farmers compensation over the years, then why are we supposed to pay the penal interests?” he asked.
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However, the remaining buyers cannot even execute registry until the builder settles its dues amounting to ₹643 crore.
A group of plot buyers formed an association — NRI Township Yamuna Plots Owners Association – in June 2022 to fight the issues.
They filed a petition in the Allahabad HC urging it to direct Yeida to implement its board resolution passed In June 2018.
The Yeida board had taken a decision that they would get the remaining work completed through a co-developer.
Tarun Sharma, general secretary of the association, blamed the builder and the Authority for causing such a distress.
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“How can Yeida allow registry when basic facilities are not there in this township. Also, when the builder started defaulting on its EMI to the authority, the Authority did not take any action on the time. The Yeida failed to monitor the project properly,” he said.
The developer (SDS Group) blames the Authority for the homebuyers’ plight, citing the Authority’s failure to provide water and electricity connections.
A spokesperson of the builder said, “The Authority was supposed to provide external and peripheral facilities like electricity transmission lines, water supply, approach roads, drains till outside the project site. As they did not provide these external services it affected the project and caused issues to buyers.”
The authority filed an FIR against the developer in 2018 for allegedly diverting the homebuyers’ ₹182 crore and investing in their other companies.
The police submitted a final report in the matter, which was rejected by a local court in July 2023, and police were directed to conduct a reinvestigation. Following this order the developer has approached the Allahabad High Court, which is pending in the court.