Defaulting allottees to be charged 8% extra in Noida

Delhi/NCR
Counting a default of Rs 7,000 crore, the Noida Authority has decided to get tough with allottees who have not paid the instalments on their property. Starting January 1, the Authority will charge an additional 8% from defaulting allottees for non-payment of instalments.

At present, allottees defaulting on instalments are charged at the rate of 11% interest. “For the first three instalments, there was no additional interest. But after that, defaulters were charged an additional penalty interest of 3%,” G P Singh, financial controller, Noida, said. “However, from January 1, we will charge allottees an additional 8% interest on the default amount after the first three defaults,” he said.

The last date for paying the instalments at the old rate of interest is December 31, 2014.

According to officials, a notice warning all allottees of the hiked interest rates has been issued on Thursday. “The aim is to recover our outstanding dues,” Singh said. Allottees of property falling under the economically weaker sections of society and lower income groups will not be affected by the order, officials said.

Officials said the allottees could also face lease deed cancellations as a last resort.

Source: http://content.magicbricks.com/industry-news/delhi-ncr-real-estate-news/defaulting-allottees-to-be-charged-8-extra-in-noida/79236.html