Recovery certificates issued against 13 builders for non-payment of dues

The Greater Noida Authority has issued Recovery Certificates (RC) against the promoters of 13 housing projects that failed to pay their outstanding dues. According to reports, a 20 per cent penalty has also been imposed on these builders. This is being viewed as a significant development for flat buyers stranded in housing projects that have remained incomplete for years.

These 13 projects fall under the ambit of the Legacy Project Policy, implemented based on the recommendations of the Amitabh Kant Committee. The Authority has appointed an expert agency, 'Currie & Brown', to conduct a survey of these projects. This survey will involve a detailed investigation into how many buyers have booked flats in each project, the amount they have deposited, the dues owed by the builder to the Authority, and the current status of construction. Further action will be decided after the survey report is received.

According to the Authority, the promoters of these 13 projects had initially deposited 25 per cent of the outstanding amount but failed to pay the remaining 75 per cent. Consequently, the Authority has issued recovery certificates after imposing a 20 per cent penalty on these builders. Following the issuance of the RC, the administration may proceed with legal processes for the recovery of the dues.

Based on the report of the survey being conducted to assess the current status of the projects, strict action, including the sealing of properties belonging to the concerned builders, may be taken. However, no specific timeline has yet been determined as to when the construction of the projects will be completed or when the buyers will receive possession.

The Uttar Pradesh government implemented the Legacy Project Policy in December 2023 based on the recommendations of the Amitabh Kant Committee. The primary objective of this policy is to complete stalled real estate projects and provide relief to flat buyers, especially those who have been waiting for years for their registration due to builders' dues and other obstacles. A total of 98 builder projects in Greater Noida fall under this policy.

The Greater Noida Authority had sent demand letters to the builders of 85 out of these 98 projects to deposit the initial 25 per cent of the outstanding amount. Out of these, the 25 per cent amount has been deposited fully or partially for 73 projects. It is noteworthy that this does not mean the full initial payment has been deposited in all 73 projects. Approximately 75,000 flats are included in these 73 projects. CEO NG Ravi Kumar provided information on the progress made under this scheme during a board meeting of the Greater Noida Authority.

In a response given in the Rajya Sabha on 9 March 2026, the Union Ministry of Urban Development stated, based on information received from the Greater Noida Authority, that the registration of a total of 40,123 booked flats in 98 projects has been completed in the names of the buyers. Out of these, 20,035 registrations were carried out after the implementation of Uttar Pradesh's Legacy Policy.

This recent action against 13 builders is expected to bring the actual status of the projects to light. The survey will assess the number of buyers, the amount deposited, the Authority's dues, and the status of construction. Subsequently, the Authority may proceed with the recovery of dues and action against the builders' properties. However, true relief for flat buyers will only come when the construction of the projects is completed, they receive possession of the flats, and the registration process moves forward.

The Amitabh Kant Committee had made recommendations to complete stalled projects, based on which the Legacy Project Policy was implemented by the Uttar Pradesh government.