The Greater Noida Authority has given a fresh lease of life to two long-stalled group housing projects by approving the induction of new co-developers. This move is part of the Uttar Pradesh government's rehabilitation policy aimed at completing stuck real estate ventures and protecting homebuyers' investments.
Policy Paves Way for Project Revival
With these two latest approvals, the total number of stalled projects in Greater Noida that have been permitted to bring in co-developers has now reached nine. The decisions were made during the Authority's recent board meeting, where officials evaluated proposals based on financial viability and the potential for completion.
The state's rehabilitation policy, which was officially rolled out on December 21, 2023, provides a framework for financially distressed projects. It allows them to partner with solvent co-developers to jointly finish construction and clear outstanding dues to the authority. Since the policy does not impose one-size-fits-all conditions, each project's terms are customized after assessing its financial health, pending dues, and overall risk.
Birla Estates to Rescue Sector 10 Project
In the first case, the Authority granted in-principle approval for Birla Estates to become the co-developer for a stalled project by Nobal Buildtech in Sector 10. Nobal Buildtech was originally allotted a plot measuring 20,246 square meters in December 2015.
The path to revival was not straightforward. Under the policy, the Authority calculated the company's net dues at approximately Rs 78 crore up to December 2023. A notice was issued demanding 25% of this amount, roughly Rs 19 crore, by early 2024. However, the developer deposited only Rs 1.7 crore in small installments despite repeated reminders.
With no substantial payment coming in, the Authority withdrew the policy benefits and initiated a recovery process. A Recovery Certificate (RC) for about Rs 120 crore was issued through the district administration on October 9, 2024.
It was only after this strict action that Nobal Buildtech, jointly with Birla Estates, approached the Authority again. They sought approval for Birla Estates to take over construction and offered to deposit 25% of the recalculated dues. The Authority's finance wing and its chartered accountant firm thoroughly vetted Birla Estates' financial documents, including balance sheets, liquidity statements, and corporate resolutions.
Officials found the firm, part of the Aditya Birla Group's real estate arm, to be financially robust. It was assessed to have a net worth of around Rs 4,000 crore, an average annual turnover of about Rs 700 crore, and liquidity of roughly Rs 150 crore.
Convinced that Birla Estates' involvement significantly increases the project's chances of completion and dues recovery, the Authority has recommended withdrawing the RC. The final approval is conditional: the company must deposit 25% of the revised dues within one month. Failure to meet this deadline will result in automatic cancellation of the co-developer status.
Floral Homes and SWAMIH Fund Boost Sector 1 Project
The second project slated for revival belongs to Gayatri Hospitality & Realcon. This developer was allotted a 36,000 square meter plot in Sector 1 back in 2011, but construction remains incomplete.
The Authority had calculated net dues of Rs 131 crore and issued a notice in February 2024 for an upfront payment of 25%. When the allottee failed to pay, the matter entered insolvency proceedings. However, an order from the National Company Law Appellate Tribunal (NCLAT) in July 2024 cleared the legal pathway for revival under the state policy.
The company then proposed Floral Homes as the co-developer. A major strength of this proposal is the backing of the SWAMIH Investment Fund. This government-backed fund had granted an in-principle approval of Rs 250 crore in 2022, followed by a final approval of Rs 300 crore in 2023 to finance the construction through Floral Homes.
As of November 2024, the project's total dues under the state policy stand at around Rs 169 crore. It is important to note that certain additional compensation issues related to the project are currently under a stay order from the High Court.
A Ray of Hope for Homebuyers
The approval of these two co-developers marks a significant step forward in resolving the long-standing issue of stalled real estate projects in the National Capital Region. The involvement of established players like Birla Estates and the commitment of institutional funding from SWAMIH bring much-needed credibility and financial muscle to these ventures.
For thousands of homebuyers who have been waiting for years, this development rekindles hope of finally receiving possession of their homes. The Greater Noida Authority's active use of the rehabilitation policy demonstrates a practical approach to unlocking dead capital and restoring confidence in the region's real estate market.
