The Noida Authority has decided to initiate asset attachment and auction proceedings against developers who have failed to comply with the Uttar Pradesh government’s policy for stalled housing projects. The measure is aimed at protecting the interests of homebuyers awaiting registry of their apartments despite full payment to developers.
Officials confirmed that out of 57 stalled housing projects identified under the state’s “stuck project” resolution scheme, only a limited number of developers have cleared their dues as per the prescribed terms. The scheme, launched on December 21, 2023, provided a structured payment plan with interest waivers for builders willing to pay 25% of their total dues upfront and the remaining 75% over three years.
The Authority’s Chief Executive Officer, Lokesh M, indicated that the administration would take firm action against non-compliant developers, including attaching and auctioning their assets as per the provisions of the policy. He said the Authority’s primary objective was to enable completion of property registries and ensure that homebuyers receive legal ownership of their flats without further delay.
As per official data, 3,724 property registries have been completed so far, while registrations for 5,758 units remain pending because of unpaid land dues. With several developers having defaulted on subsequent payments after paying the initial 25%, the Authority now plans to revoke interest waivers and initiate recoveries.
An internal compliance review showed that while 10 promoters have made no payments under the scheme, 25 have paid partially and 35 paid the first instalment before halting further transactions. Notices were served to all defaulting developers, but most failed to respond satisfactorily within the stipulated period.
Officials said the state’s policy was introduced to unlock stalled projects, which had left thousands of homebuyers across Noida, Greater Noida, and Ghaziabad without registries for years. By offering a waiver on interest and penalties, the government aimed to revive such projects and ensure smoother registration processes. However, inconsistent compliance has limited the policy’s effectiveness.
A senior Authority official said that several builders had used the initial payment provision to secure the benefits of the scheme but later did not follow through with their remaining commitments. The administration has therefore decided to recover dues through attachment and auction, in line with legal provisions under the Uttar Pradesh Urban Development framework.
The Authority has also started identifying specific project assets suitable for attachment to facilitate recovery. Proceeds from the auction will be directed towards clearing land cost dues and completing property registrations in favour of buyers.
For thousands of homebuyers who have already paid the full value of their properties, the Authority’s latest decision offers a potential breakthrough. Many buyers have been waiting years for registry and possession due to developers’ financial defaults. One such buyer, Arun Kumar, said the decision brings hope that the Authority will recover pending dues and finally enable registries to move forward.
In addition to enforcement against non-compliant builders, the Authority is examining the possibility of cancelling land allotments for projects that have remained vacant or inactive for over a decade. This move forms part of a broader initiative to ensure land utilisation efficiency and greater accountability in the real estate sector.
Officials said that the enforcement measures will be rolled out in a phased manner, beginning with developers who have the largest pending dues. Coordination with district administration authorities has already begun to expedite the legal process for asset attachment and auctions.
The Noida Authority expects that these actions will restore confidence among homebuyers and send a clear signal to developers about compliance with government policy. By enforcing recoveries and prioritising registries, officials believe the initiative will address a long-pending issue in the NCR real estate market and improve transparency in project completion mechanisms.
.png)