UP considers zero period policy to aid stalled real estate projects
Real Estate

UP considers zero period policy to aid stalled real estate projects

In a significant development aimed at addressing the concerns of homebuyers stuck in stalled real estate projects, the Uttar Pradesh government is actively considering a rehabilitation package. This initiative stems from the recommendations made earlier this year by an expert committee led by bureaucrat Amitabh Kant.

During a specially convened meeting in Lucknow on September 28, dedicated to discussing the expert panel's suggestions, several crucial decisions were deliberated. Chaired by the chief secretary, the meeting reached a consensus on granting a four-year 'zero period' to developers. This period, as proposed, involves waiving interest payments on land dues and penalties for defaults. Developers will not be permitted to pass on penalties, extra costs, or interest to buyers during this time. Furthermore, the meeting suggested allowing the original allottees to collaborate with co-developers to complete financially viable projects, aiming to revitalise the real estate sector in the state.

However, a lack of consensus emerged among officials present, including CEOs of Noida, Greater Noida, and Yamuna Expressway authorities, as well as the state industrial development commissioner, concerning the delinking of registries from builders' payment of land dues. Some officials expressed concerns that such a move might lead to a loss of control over the dues repayment process.

To bridge funding gaps for stalled projects, the committee chaired by Amitabh Kant proposed granting additional Floor Area Ratio (FAR) to projects in exchange for additional charges paid to the government. Revenue generated from the extra built-up area would be utilised to support these projects. The rehabilitation package might also include incentives, such as increasing commercial space within projects.

All three authorities involved recommended providing builders with an additional three years to complete projects without imposing time-extension charges. Homebuyers have been particularly concerned about the delayed registration of flats in various projects across Noida due to disputes between developers and the government over pending dues. The authorities are considering amendments to existing policies, potentially allowing partial cancellation of lease deeds for incomplete portions of projects and introducing a policy for partial surrender of plots to reduce dues burdens.

According to estimates, builders collectively owe more than Rs 470 billion to the development authorities in the district. If the proposed concessions under the zero period policy are implemented, Noida Authority might have to forgo around Rs 74 billion, Greater Noida approximately Rs 60 billion, and the Yamuna Expressway Authority around Rs 10 billion.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

In a significant development aimed at addressing the concerns of homebuyers stuck in stalled real estate projects, the Uttar Pradesh government is actively considering a rehabilitation package. This initiative stems from the recommendations made earlier this year by an expert committee led by bureaucrat Amitabh Kant. During a specially convened meeting in Lucknow on September 28, dedicated to discussing the expert panel's suggestions, several crucial decisions were deliberated. Chaired by the chief secretary, the meeting reached a consensus on granting a four-year 'zero period' to developers. This period, as proposed, involves waiving interest payments on land dues and penalties for defaults. Developers will not be permitted to pass on penalties, extra costs, or interest to buyers during this time. Furthermore, the meeting suggested allowing the original allottees to collaborate with co-developers to complete financially viable projects, aiming to revitalise the real estate sector in the state. However, a lack of consensus emerged among officials present, including CEOs of Noida, Greater Noida, and Yamuna Expressway authorities, as well as the state industrial development commissioner, concerning the delinking of registries from builders' payment of land dues. Some officials expressed concerns that such a move might lead to a loss of control over the dues repayment process. To bridge funding gaps for stalled projects, the committee chaired by Amitabh Kant proposed granting additional Floor Area Ratio (FAR) to projects in exchange for additional charges paid to the government. Revenue generated from the extra built-up area would be utilised to support these projects. The rehabilitation package might also include incentives, such as increasing commercial space within projects. All three authorities involved recommended providing builders with an additional three years to complete projects without imposing time-extension charges. Homebuyers have been particularly concerned about the delayed registration of flats in various projects across Noida due to disputes between developers and the government over pending dues. The authorities are considering amendments to existing policies, potentially allowing partial cancellation of lease deeds for incomplete portions of projects and introducing a policy for partial surrender of plots to reduce dues burdens. According to estimates, builders collectively owe more than Rs 470 billion to the development authorities in the district. If the proposed concessions under the zero period policy are implemented, Noida Authority might have to forgo around Rs 74 billion, Greater Noida approximately Rs 60 billion, and the Yamuna Expressway Authority around Rs 10 billion.

Next Story
Infrastructure Urban

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Next Story
Infrastructure Urban

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Next Story
Infrastructure Transport

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement