Policy announced to recover outstanding dues
Taking into account the recession in the real estate sector and to bring uniformity in dealing with different categories of Real Estate Projects, Punjab Housing and Urban Development Department has notified a policy on November 28, 2019 allowing the promoters to clear their outstanding dues as on 31-12-2019 in 6 half yearly installments along with applicable interest in the shape of post dated cheques.
An official spokesperson said that the first installment of the outstanding payment will be due on 31-03-2020. To avail the benefit of the policy the developers are required to submit all the cheques by 31-12-2019. However, the benefit extended under the policy has been made applicable only in those cases, where security in the form of bank guarantee or hypothecation of plots has been provided for the amount due.
He further said that Greater Mohali Area Development Authority (GMADA) had stepped the ante against the huge default by private real estate promoters on account of EDC and other dues by publishing their outstanding dues online and sending regular notices for payment. The outstanding dues are on the account of External Development Charges (EDC), License Fee (LF), Social Infrastructure Fund (SIF) and PR-4/7 cess of various Mega/Super Mega Projects and projects licensed under Punjab Apartment and Property Regulation Act 1995.
The policy has evoked huge response from the developers as till date GMADA has received post dated cheques from various developers amounting to Rs. 435.85 crore. Developers who have deposited the post dated cheques include Curo India Pvt. Ltd., Gillco Developers and Builders Pvt. Ltd., JLPL, Manohar Infrastructure & Constructions Pvt. Ltd, Omaxe Chandigarh Extension Developers Pvt. Ltd. and TDI Infratech Ltd. These developers have deposited amount outstanding either against some of their projects or all of their projects. Many other developers have also shown inclination in depositing the outstanding amount and are being communicated about the schedule of payment, the spokesperson added.
The spokesperson said that the policy has been formulated to give a chance to those developers who are keen to regularize their dues. Developers clearing outstanding dues as per the provisions of the policy would be given every support to run their projects. However, remaining defaulters shall be dealt strictly as the hypothecated properties of developers who would fail to clear the outstanding dues within stipulated time shall be auctioned by the Special Development Authorities, he added.