Real Estate
NCLAT appoints NBCC as PMC for completion of 16 Supertech projects
New Delhi: National Company Law Appellate Tribunal(NCLAT)- New Delhi has appointed NBCC (India) as project management consultant (PMC) for completion of 16 projects of Supertech. The company will complete 16 projects with about 49,748 houses in Uttar Pradesh, Uttarakhand, Haryana and Karnakata.The tentative construction cost of the project is approximately Rs 9,445 crore including 3% contingency. The PMC fees fixed as 8% including 1% marketing fee. It has been appointed as the PMC with no liability, and it will complete the Supertech projects within three years, NBCC said in two separate regulatory filings.
The NBCC shall start process of award of work as per Condition-IV, prior to March 31, 2025 and complete the award of contract within one month thereafter and construction shall commence with effect from May 01, 2025, said the court in its order.
The home buyers/ commercial unit holders, who have already been allotted units by the corporate debtor, which allotments are subsisting, will not be subjected to any escalation of cost, except the dues which are required to be paid by them as per builder buyers agreements.
Rejecting demands to carve out profitable projects for private developers, the NCLAT has entrusted all 16 projects to NBCC. The tribunal underscored that surplus funds from cash-positive projects would be used to finance those in deficit, ensuring the completion of all stalled developments.
Repayment of land authorities, banks and financial institutions will simultaneously begin as per the date and manner decided by apex court committee. The balance amount in a project apart from 70% amount which is to be used for construction, may be used for repayment. The payment for land cost can also be debited from 70% amount as per Section 4(2)(D) of RERA Act and as per the decision of the Apex Court Committee.
NCLAT directed constitution of an apex court committee and project-wise court committee for each project. NBCC (I) will nominate one member in each project-wise court committee.
A separate account, in the name of “NBCC (I)- Supertech Unfinished Project” will be opened and operated by NBCC through its authorised signatories with joint signature of IRP. All funding and finance received by the NBCC/ Apex Court Committee for completion of the project will be credited in the above designated account.
Supertech was admitted to insolvency on March 25, 2022, after Union Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), citing defaults on loans extended for projects such as Eco Village-II in Greater Noida. Following the National Company Law Tribunal’s (NCLT) order, an Interim Resolution Professional (IRP) was appointed to oversee the company’s operations and facilitate the resolution process.
The NCLAT intervened in April 2022, directing that construction on non-Eco Village-II projects should continue under IRP supervision while creditors considered the resolution plan for Eco Village-II.
In subsequent appeals, the Supreme Court upheld the continuation of this approach, allowing some projects to proceed while keeping final decisions on Eco Village-II, one of the developer’s key projects, pending further orders.
During the proceedings, the NCLAT adopted a project-wise resolution approach to address the complexities arising from Supertech’s extensive portfolio. Each project’s financial and operational status was evaluated separately, and stakeholders, including creditors, homebuyers, and authorities, were consulted.
Real Estate
UP’s lower tax on jet fuel to give a boost to Delhi-NCR’s second airport
Noida: The Delhi-National Capital Region’s second airport in Jewar, Uttar Pradesh is expected to benefit from significantly lower value-added tax on aviation fuel, according to industry executives and experts.
The existing airport catering to Delhi-NCR, in Gurugram, Haryana, charges a value added tax of 25% on aviation turbine fuel, while the tax at the new airport will be about 1%. Airlines spend 35-40% of their total expenditure on fuel.
“One of the things we do have to offer is lower VAT on ATF. That is important to carriers. Fuel is by far the largest in an airline’s profit and loss statement,” Christoph Schnellmann, chief executive officer, Noida International Airport Ltd.
“If it is something that we can do, or the government can do to lower some of those costs, it will ultimately bring down the cost of travel for passengers. Air travel is price sensitive everywhere,” Schnellmann said.
Noida International Airport Ltd operates the Jewar airport.
The VAT on aviation turbine fuel ranges between 1% and 30% for various airports. The civil aviation ministry has been actively asking state governments to reduce VAT on aviation fuel, and so far 19 states and union territories have reduced the tax in their respective territories.
The Uttar Pradesh government reduced the VAT on ATF in the state to 1% from 21% in 2022.
The first phase of the Noida International Airport is expected to be operational by the end of 2024, with one runway, and one terminal having the capacity to handle traffic of 12 million passengers annually.
The airport is about 72 km from Indira Gandhi International Airport in New Delhi, 52 km from Noida, and 130 km from Agra.
The airport is already seeing strong interest from domestic as well as international airlines. India’s largest airline, IndiGo, will be the launch carrier for the airport. Recently, Akasa Air announced it will base its aircraft at Jewar for domestic and international flights.
Air India Express, the low-cost subsidiary of Air India, is also looking at Jewar airport.
“We will be looking at where the demand is. Certainly, Jewar is a big catchment area. It will serve a specific market and certainly we would like to be there,” said Aloke Singh, managing director, Air India Express.
“Certainly, demand comes first. I am saying that (lower VAT) is the icing on the cake,” Singh added.
Airlines feel a lower VAT would also mean lower fares for passengers. “Any such benefits in terms of cost will be transferred to passengers, which means lower fares for passengers flying out of Jewar airport,” said the chief executive officer of a low-cost airline, declining to be identified.
Analysts also predict a huge benefit for Jewar airport over Delhi.
“In the case of Delhi airport, 25% is quite high VAT on ATF. I feel the day Noida airport at Jewar is commissioned, Delhi government may be forced to reduce (the tax); otherwise this will be one of the reasons for moving lot of traffic to Jewar,” Vijai Agrawal, former chairman of the Airports Authority of India, said during a webinar conducted by aviation consultancy firm CAPA India.
Real Estate
The new office of Jewar Airport will be built in the building of Greater Noida Authority, luxurious accommodation will be available for free
Greater Noida: Noida International Airport Limited (NIAL) will build its new office in Greater Noida Authority. Actually, a tower of Greater Noida Authority has been lying vacant for a long time. NIAL will build its office in the same. Preparations have started for this. The special thing is that Greater Noida Authority will give this office to NIAL for free. That is, no money will have to be paid to Greater Noida Authority in exchange for giving the building. The luxurious tower is being given to the officers of Noida Airport for free.
These people will get tremendous benefit
Earlier the office of Noida International Airport Limited was in Advant Business Tower located in Sector-142 of Noida, but it was closed a few days ago. Now only NIAL’s office is also on the site of Jewar Airport. In such a situation, those people who go to Noida Airport from Delhi or Gurugram face a lot of problems. They spend several hours in commuting daily, but now there is a matter of happiness for these people as well. Because the new office of Noida Airport will be built in the building of Greater Noida Authority. Preparations have started for this. Senior officials associated with the airport have talked to the officer of Greater Noida Authority. Very soon the work of shifting it will be done.
Authority's stake in the airport
Let us tell you that the building behind Greater Noida Authority was lying vacant for a long time. This office is being shifted to that building. Because Greater Noida Authority also has a stake in Noida Airport. Actually, Uttar Pradesh government and Noida Authority have 37.5% stake, Greater Noida has 12.5% stake and Yamuna Authority also has 12.5% stake.
Real Estate
Signature Global looking to take over stalled housing projects in Noida to expand biz
Noida: Realty firm Signature Global is looking for land in Noida and Greater Noida to expand the business and will explore taking over stalled housing projects as well provided there are no legacy litigations. Signature Global, which got listed in 2023, has a significant presence in the Gurugram market of Delhi-NCR.
In an interview Signature Global founder and Chairman Pradeep Aggarwal said, We want to expand our business in Delhi-NCR beyond the Gurugram market. We are looking for land parcels in Noida, Greater Noida and Yamuna Expressway.
The company will participate in land auctions conducted by development authorities of these three regions, he added.
That apart, Aggarwal said, We are also looking to take over stalled housing projects in Noida. The Noida authority has come up with a co-development policy to revive stalled projects. A couple of projects have been approved under this new policy.
Aggarwal, however, said the company will take over stalled housing projects, provided the company does not become liable for legacy litigations.
While it will keep looking for land acquisition, Aggarwal said the company has enough land banks in Gurugram for future development.
He said the company will launch multiple housing projects worth Rs 50,000 crore in Delhi-NCR over the next three years to tap strong consumer demand.
“Our target is to grow sales bookings by 25 per cent annually”, Aggarwal said. He expressed confidence that the company would easily achieve the target of Rs 10,000 crore sales bookings in this fiscal.
Signature Global sold Rs 7,270 crore worth of properties during the last fiscal. Aggarwal noted that housing demand continues to be strong in Gurugram.
“We had given a pre-sales (sales bookings) guidance of Rs 10,000 crore for the current fiscal. We have already achieved Rs 5,900 crore worth of sales bookings in the first half of this fiscal”, he said. Considering the strong performance in the first six months, he said, “We are quite hopeful of over-achieving of our annual guidance”.
Signature Global’s sale bookings jumped over three times to Rs 5,900 crore in the April-September period of the 2024-25 fiscal from Rs 1,860 crore in the corresponding period of the preceding year. Last month, the company reported a consolidated net profit of Rs 4.15 crore for the quarter ended September.
The company had posted a net loss of Rs 19.92 crore in the year-ago period. Total income rose to Rs 777.42 crore in the second quarter of this fiscal from Rs 121.16 crore in the corresponding period of the preceding year.
Signature Global has so far delivered 11 million square feet of housing area. It has a pipeline of about 32.2 million square feet of saleable area in forthcoming projects along with 16.4 million square feet of ongoing projects.
Aggarwal said the company is targeting to deliver 16 million square feet area to its customers by March 2026. This will help the company to recognise around Rs 10,000 crore revenue in the books of accounts.
Real Estate
Realtors asked to execute registry to homebuyers by Dec 31
Greater Noida: The Greater Noida authority has asked realtors to ensure that all pending flat registries in their respective projects are executed in favour of homebuyers by December 31. else be ready to face the consequences.
Officials said in case the realtors fail to comply, the authority will not offer them the applicable waivers on interest imposed on financial dues in housing projects.
“This is the last chance for builders. After this notice, the realtors not registering flats by December 31 will not be given any more time. The authority will take action and will withdraw the relief on interest granted to housing projects following the recommendations of the Amitabh Kant Committee,” said Saumya Srivastava, additional chief executive officer (ACEO), Greater Noida.
“We have directed the building department of the authority to lay more emphasis on registry to flat buyers or to cancel the allotment of erratic builders. Of the total 98 projects in Greater Noida, 76 are covered under the policy prepared on the recommendations of the Amitabh Kant committee,” the ACEO said.
NG Ravi Kumar, CEO, Greater Noida authority has also directed strict action against builders that continue to delay the registry of flats.
On Thursday, ACEO Srivastava held a meeting with the builders in the boardroom of the authority’s main office in Sector Knowledge Park-5.
Along with other officials, Srivastava saw a presentation about each housing project, where registries are pending. For these projects, 25% of the amount (full and partial) has been deposited by builders.
These projects have 62,912 flats, of which 38,661 have been issued completion certificates. So far, about 31,600 flats have been registered. There is still a registry of about 7,000 flats pending in 34 builder projects.
The authority is trying to register these flats, not registered as yet despite the UP government giving them waivers, paving way for a solution to homebuyers’ issues.
It intends that the registration of flats in the name of buyers should be completed before the exemption from late fee ends on January 21, 2025. It will prevent the buyers from bearing the late fees.
The ACEO also reprimanded the builders who are charging more from buyers in the name of no objection certificate (NOC). He warned of action if buyers were charged more than the prescribed fee for NOC.
Builder department manager Sneh Lata and more than 30 builder representatives were present in this meeting.
These realtors, however, were unavailable for comment on the issue. “These realtors should come forward to make sure that the homebuyers get the registry done and get relief. We will try to resolve the deadlock and help the homebuyers get the registry done in these projects. Most of the realtors are eagerly taking benefit of the state government policy and executing registry in favour of the homebuyers,” said Dinesh Gupta, secretary, Confederation of Real Estate Developers Association of India (CREDAI), a builders’ group.
Homebuyers said that the authority must pursue the promoters of these housing projects for the registry. “We hope that after the authority’s warning these five developers will come forward to execute the registry and complete all formalities required for registry with an aim to address the issues of the buyers,” said Abhishek Kumar, president, Noida Extension flat owners welfare association.
Real Estate
Noida Authority cancels allotment of prime group housing plot in Sector 143
Noida: The Noida authority on Thursday said it has cancelled the allotment of a group housing plot measuring 13,961 square metres in Sector 143.
The move came after the realty firm, Docile Buildtech Private Limited, failed to clear land cost dues of ₹130 crore despite repeated notices. The authority also started the process of taking over possession of the group housing land parcel and officials said they will re-allot the land to a new developer with an aim to recover its revenue.
“We have cancelled the allotment of this group housing plot that has been lying vacant and the realty firm has failed to clear dues of ₹130 crore despite the authority sending it notices. After the firm failed to reply to our notices and also showed no interest in paying the dues, the authority cancelled the allotment and started the process of taking over the land. Docile Buildtech is a subsidiary firm of Logix Group,” said Lokesh M, chief executive officer, Noida authority.
According to officials, the authority in 2011 allotted 100,090 square metres of land to Logix City Developers Private Limited for a group housing project in Sector 143.
On November 18, 2017, the Noida authority sold 13,961 square metres from the 100,090 square metre group housing land to Docile Buildtech, which was to develop the group housing project.
The authority allotted the plot at a rate of ₹23,550 per square metre. But even after so many years, the firm neither built the housing project nor paid the dues to the authority, said officials.
“If we calculate the value of this 13,961 square metres group housing plot at the prevailing market rate, then it may be worth about ₹450 crore. Once we take possession of this plot and resell it, then we can recover our dues and also collect additional revenue,” Vandana Tripathi, additional chief executive officer, Noida authority.
The authority has written to the economic offences wing to probe Logix City developers as that firm has been accused of misusing funds collected for Logix Blossom Greens.
“We sought the EOW probe so that we can do justice to homebuyers, who failed to get apartments in this project,” said Lokesh M, CEO, Noida authority.
Shakti Nath, promoter of Logix Group, said, “The Noida authority cannot cancel the allotment or take over possession against Logix or Docile Buildtech because the matter is pending before the National Company Law Tribunal. Also, there is a third party right as we have sold the flats to buyers in both projects. I do not know how the authority is acting in this manner.”
Real Estate
All you need to know about ‘New Agra’ along Yamuna Expressway
Noida: The Uttar Pradesh government is planning to develop a new city near the historic city of Agra along the Yamuna Expressway, to be known as “New Agra”. It will be developed as a tourism and commercial urban centre under Agra district.
The Uttar Pradesh government is planning to develop a new city near the historic city of Agra along the Yamuna Expressway, to be known as “New Agra”. It will be developed as a tourism and commercial urban centre under Agra district.
The Yamuna Expressway Industrial Development Authority (YEIDA) has been entrusted with the task of developing “New Agra” on around 10,500 hectares of land along Yamuna Expressway, that connects Greater Noida with heritage city of Agra.
The Authority has already prepared a blueprint of the project and is likely to begin physical survey of the land and other geographical factors soon before sending a final plan to the state government for final approval.
According to officials, Noida International Airport is scheduled to open in April 2025 and is likely to trigger an increase in tourist footfall to Agra so ‘New Agra’ will not only cater to the needs in future but also capitalise on growing tourism demand.
Real estate experts say that ‘New Agra’ will significantly reshape the real estate landscape in the region and the property prices would further go up. Experts add that industries that will be established around the new city could further stimulate demand for commercial real estate, including office spaces, retail, and hospitality.
Here is all you need to know about New Agra:
The Proposal
According to YEIDA officials, the vision of the project is to capitalise on the growing tourism and commercial sector demand in the region.
“Agra is world famous for the Taj Mahal and lakhs of tourists come every year to visit the Taj. The project aims to leverage Agra’s global appeal with attractions inspired by historical sites. The New Agra project is intended to become a major destination for tourism, cashing in on Agra’s global appeal as home to the Taj Mahal and Fatehpur Sikri”
The Yamuna Expressway Authority has prepared a draft master plan with the help of a consultant that conducted a socio-economic survey and also mapped structural framework in the region.
The YEIDA will now conduct an on-site land verification to assess factors such as encroachments and connectivity options among others and submit a final proposal to the Uttar Pradesh government for approval and its inclusion in the Master Plan 2041, the official said.
According to the proposal, New Agra will be developed on the lines of other historical cities across the globe and offer visitors a glimpse into global and Indian history. The ‘New Agra Urban Center’ will be planned as a vibrant, green, and modern city.
The ‘New Agra’ project has four major segments —industrial & commercial, environment, heritage, and transport. The project aims to balance modern urban development with the preservation of Agra’s historical legacy.
Focus on environmental sustainability
YEIDA officials said that special emphasis will be placed on developing pollution free zones, predominantly in the Taj Trapezium Zone (TTZ), so that the beauty and integrity of the Taj Mahal is protected.
“Only green industrial units such as information technology (IT), soft toys and textiles will be permitted in the industrial zone. New Agra will also have theme parks, ample recreational spaces and large green belts to promote environmental sustainability,” a YEIDA official said.
The project plan will have strict regulations on emissions to prevent any damage to the Taj.
He added that the commercial segment of the New Agra Urban Centre will also include start rated hotels, food and beverages hubs.
New routes, parking facilities, and public transport systems will be created to alleviate pressure on existing highways and solve traffic and transport issues in the region.
Where will the land come from?
‘New Agra’ will come up along Yamuna Expressway and will be located roughly 190 km from Noida and around 140 km from the upcoming Noida Airport in Jewar. The land for New Agra will be procured from 60 villages.
These villages, where the land has been identified for the new city, fall in Etmadpur tehsil of the city of Agra. The New Agra Urban Centre will spread on 10,500 hectares. The project will help urbanise agricultural land into a new hub of tourism, heritage and industrial clusters.
Real Estate
Property will become expensive in Noida: Proposal to increase circle rate by 30%, if approved, burden on investors will increase by 3%
Noida: A proposal has been prepared to increase circle rates for Noida region by 25 to 30 percent in residential areas and 10 to 15 percent in other areas. If the circle rates increase by 30 percent after the stamp and registration department approves this proposal, then the cost of owning a house in Noida region will also increase by 3 percent.
Circle rates have not changed for 5 years
Assistant Inspector General Shashi Bhanu Mishra said that the Stamp and Registration Department has sent a proposal to the District Officer to revise the rates. Property prices in Noida and Greater Noida have increased continuously, but no change has been made in the circle rate since 2019. Due to which there has not been much increase in the revenue received by the department even after the purchase and sale of property. To increase the revenue, the circle rate should be changed.
This is the circle rate
The circle rate is the minimum valuation rate at which any property can be sold. This is why it is often referred to as the guidance price for properties, so developers usually set their prices in accordance with the circle rate. The government uses the circle rate to determine the amount of various charges, fees and taxes associated with property transactions. These mainly include stamp duty. The stamp duty levied on the transfer of property is calculated on the basis of circle rate. At the same time, the fee charged for registering the property transaction is also determined by the circle rate. It is usually a percentage of the circle rate of the property. Apart from this, the fee charged for the transfer of ownership of the property is usually based on the circle rate. This fee is applicable only on re-sale properties.
Circle rate affects resale in this way
If a person buys a 500 sq m property in Noida as resale and the circle rate of this area in Noida is Rs 47,000 per sq m. If the transfer charge is 2 per cent of the circle rate, it comes to Rs 940 per sq m. In such a situation, a total of Rs 4,70,000 should be paid as transfer fee for this resale property. If a 30 per cent increase is implemented in the circle rate of the Noida area, then buying a pre-owned home may require paying about 3 per cent more.
Let's understand the complete math
In case of an increase in circle rate, the baseline rate of a property will increase and the stamp duty and registration fee will also increase. It can be understood like this that a 2 BHK house with 1,000 sq ft area somewhere in Noida is a resale property in Noida, where the price should be Rs 5,000 per sq ft. Therefore, the property will be worth Rs 50 lakh. If we assume that the circle rate is also Rs 5,000 per sq ft, stamp duty is 7 per cent, registration fee is 1 per cent and transfer fee is 2 per cent, then the calculation will be as follows. Stamp duty will be Rs 3.5 lakh, registration fee will be Rs 50,000 and transfer fee will be Rs 1 lakh. In such a situation, the total cost of transfer of resale property will be Rs 5 lakh If the circle rates increase by 30 per cent, then the stamp duty will be Rs 4.55 lakh, registration fee will be Rs 65,000 and transfer fee will be Rs 1.3 lakh. The total cost of transfer of property will be Rs 6.5 lakh. In such a situation, the transfer of re-sale property will increase by about Rs 1.5 lakh which is 3 percent more than the old value of the property of Rs 50 lakh.
Real Estate
Jaypee Infratech MD and CEO Aalok Champak Dave resigns
Noida: Jaypee Infratech Ltd’s Managing Director and Chief Executive Officer Aalok Champak Dave has resigned from the company citing personal reasons. The company has appointed Abhijit Gohil as the new Chief Executive Officer (CEO).
“We wish to inform you that that the Company has received intimation dated 13th November, 2024 from Mr. Aalok Champak Dave, Managing Director & Chief Executive Director of the company, conveying his resignation due to personal reasons from the position of: 1. Chief Executive Officer with effect from closing hours of 24th November 2024; and 2. Managing Director / Director with effect from close of business hours on 30th November 2024, due to personal reasons,” the company said in a regulatory filing.
Dave joined Suraksha Group in 2015 and has been involved in the process of acquiring Jaypee Infratech for the last six years.
Meanwhile, Jaypee Infratech Ltd has reported a consolidated net profit of ₹88.20 crore for the September quarter. The company had posted a net loss of ₹588.31 crore in the year-ago period. Total income declined to ₹222.86 crore in the second quarter of the 2024-25 fiscal year from ₹357.92 crore in the corresponding period of the previous year, according to a regulatory filing on November 15.
The back story
Mumbai-based Suraksha Group took control over the embattled real estate firm Jaypee Infratech in June this year by constituting a three-member board giving relief to more than 20,000 homebuyers whose investments are stuck across various projects being developed in Delhi-NCR. The takeover followed the insolvency appellate tribunal NCLAT decision on May 24, 2024, upholding Suraksha Group’s bid to acquire JIL. The date of the NCLAT order, May 24, has been treated as the ‘Approval Date’ as defined in the approved resolution plan.
The NCLAT had directed Suraksha Group to pay an additional ₹1,334 crore to Yamuna Expressway Industrial Development Authority (YEIDA) as farmers. Many players, including YEIDA have filed petition in the Supreme Court against the NCLAT order and the matter is sub-judice.
After taking control of the JIL, Suraksha Group has been infusing funds as well as preparing for commencing the construction of stalled housing projects where around 20,000 homebuyers have invested.
Jaypee Infratech went into Corporate Insolvency Resolution Process (CIRP) on August 9, 2017 over an application by the IDBI Bank-led consortium. On March 7 last year, the NCLT approved the bid of the Suraksha group to buy JIL. However, many parties, including YEIDA, filed a petition in the NCLAT challenging the NCLT order.
Real Estate
Bhutani bought Logix Mall for Rs 1000 crore, a five star hotel will be built
Noida: Bhutani Infra, a leading company in the real estate sector, has achieved a major milestone. The company has acquired Logix Mall located in Sector 32. After this important acquisition, this mall will now be known as Bhutani City Center 32. The location of the mall is very close to Delhi. It can be easily reached by metro and road. Its deal has been done for about Rs 1000 crore. Let us tell you that this new project of Bhutani Infra will not only change the retail landscape of Noida, but will also increase employment and business opportunities in the area.
Company's expansion plan: Ashish Bhutani
Bhutani Infra CEO Ashish Bhutani called this acquisition an important part of the company’s expansion plan. He said that in the last one year, there has been a 35 percent increase in the demand for premium mixed-use development in Noida. In such a situation, Bhutani City Center 32 will play an important role in giving a new direction to the future of urban life and investment in this area.
A five star hotel will also be established
Ashish Bhutani said that Bhutani Infra plans to make this mall one of the best shopping destinations in India. The company will set up a five star hotel along with giving space to luxury brands here. This step has been taken to meet the demand of the high-income group living in the nearby area.
Bhutani City Centre 32
Bhutani City Centre 32 currently has a number of leading brands. These include names like Shoppers Stop, Pantaloons, Haldiram’s, Cinnabon, Forest Essentials, Nykaa and Samsung. For fashionistas, brands like W, Soch, Bata, Adidas, Puma, Miniso and Biba are available. For entertainment, there is a PVR multiplex, while lifestyle brands like Fabindia, Hamleys, NewU and Looks are also present. The food court has restaurants like KFC, Domino’s, Biryani Blues and Burger King.