In a bid to address stalled real estate projects and ease the financial burden on developers, the Uttar Pradesh government has extended a two-year zero-period benefit to 15 builders. This strategic move, which comes as part of broader efforts to rehabilitate projects affected by regulatory restrictions, is expected to reduce outstanding dues for these developers significantly.
Background of the Zero-Period Benefit
The zero-period benefit was initially introduced to provide relief to real estate developers whose projects were stalled due to the construction ban imposed by the National Green Tribunal (NGT) near environmentally sensitive areas. Specifically, projects within a 10 km radius of the Okhla Bird Sanctuary (OBS) faced severe restrictions starting in 2013, leading to delays and financial losses. The Uttar Pradesh government, following recommendations from a panel headed by former NITI Aayog CEO Amitabh Kant, first rolled out this benefit in December 2023 for projects stalled due to the Covid pandemic. This initial phase helped reduce the Noida Authority’s dues from ₹8,234 crore to ₹1,865 crore, with 27 developers clearing significant amounts of their liabilities.
The Second Extension
Building on the success of the first round, the Uttar Pradesh government has now extended the two-year zero-period benefit to 15 additional builders for projects between 2013 and 2015. Under this second phase, interest and penal interest imposed on builders during the stalled period will be waived. The move is expected to further reduce the outstanding dues by approximately ₹182 crore.
During the recent board review, each project was scrutinized individually to assess the level of construction at the time of the NGT restrictions and the status of Occupancy Certificate (OC) applications. Notably, any previous zero-period benefits granted due to NGT restrictions were adjusted against this new waiver, meaning that only eligible projects received additional relief. As a result, projects by developers such as Laureate Buildwell, HR Oracle, AIMS RG Angel Promoters, Prateek Buildtech, and others have seen their dues significantly reduced or even completely waived.
Also Read: Chandigarh Hikes Property Tax: What to Expect in the New Fiscal Year
Implications for the Real Estate Sector
The decision to extend the zero-period benefit is expected to have far-reaching implications for the real estate market in Uttar Pradesh. Developers anticipate that clearing these outstanding dues will help revive stalled projects, thereby boosting investor confidence and accelerating housing project completion. Homebuyers, who have long been affected by delays in project delivery, may also benefit from this move as it is expected that developers will pass on some of the relief to buyers by avoiding extra interest burdens.
Furthermore, this initiative underscores the proactive approach taken by the Uttar Pradesh government in addressing long-standing issues in the real estate sector. By extending these benefits, the government aims to streamline the rehabilitation process of stalled projects, ensuring that builders can focus on completing constructions without the burden of excessive financial liabilities.
Conclusion
The recent decision by the Uttar Pradesh government to extend the two-year zero-period benefit to 15 builders marks a significant step towards reviving stalled real estate projects. This move, which waives off interest and penal interest for developers, not only reduces the financial burden on builders but also paves the way for faster project completion and improved market confidence. As the government continues to implement measures to stabilize the sector, stakeholders remain hopeful that such initiatives will ultimately lead to a more efficient and vibrant real estate market in the region.
By carefully addressing the challenges faced during the stalled period, the "Uttar Pradesh government extends two-year zero-Period" benefit is set to drive positive change, benefiting both developers and homebuyers in the long run.
Also Read: Updated Maharashtra Ready Reckoner Rates for FY 2025-26
_1743500978.webp)
Ans 1. The two-year zero-period benefit is a relief measure by the Uttar Pradesh government that waives interest and penal interest for real estate developers whose projects were stalled due to regulatory restrictions.
Ans 2. It was introduced to help developers affected by the construction ban imposed by the National Green Tribunal (NGT) near environmentally sensitive zones, such as the Okhla Bird Sanctuary.
Ans 3. It reduces their outstanding dues, making it easier for them to complete stalled projects and clear liabilities.
Ans 4. Developers such as Laureate Buildwell, HR Oracle, AIMS RG Angel Promoters, Prateek Buildtech, and others have received relief under this scheme.
Ans 5. The second phase is expected to reduce outstanding dues by approximately ₹182 crore.
Ans 6. Homebuyers may see faster project completion and potentially lower financial burdens as developers pass on some of the relief.
Ans 7. Yes, the first phase of this benefit was introduced in December 2023 to help projects stalled due to the Covid pandemic.
Ans 8. It reduced the dues from ₹8,234 crore to ₹1,865 crore, significantly easing the financial load on developers.
Ans 9. No, only projects that meet specific criteria, such as being stalled due to NGT restrictions between 2013 and 2015, qualify for this relief.
Ans 10. Yes, by reducing financial burdens and ensuring project completion, the initiative is expected to restore confidence among investors and homebuyers.