The Jaypee Group and Amrapali Group, which were among the largest real estate groups in India once upon a time have collapsed and gone bankrupt. As per reports, the groups have only delivered around 30,000 completed units, while around 70,000 units are still pending. Tens of thousands of customers who invested their life savings to buy these units have now been left without any real estate for them to own. Many lenders started filing cases against these builders when the builders could not repay their loans and could not finish development of their projects. The amount of cases against these lenders kept building up and as per latest reports, SBI has filed a case for dues against the Jaypee Groupe for ₹6,893 crore, whereas, the Amrapali group owes around ₹9,000 crore to different financial institution.
In light of this recent news, let’s take a look at some of the major projects from these other major builder groups that still remain unfinished to this day.
Shivalik Homes 2: Shivalik Homes 2 is a large 700 unit apartment complex planned in Noida Extension. Work on project began in 2015 and the deadline for handover of flats to the buyers was set for December 2018. However, as per the latest reports, construction on any of the buildings has not been completed yet. Many buyers have reportedly already paid around 40%-50% of the total cost but are yet to see any significant progress. Buyers have also approached police stations to lodge complaints.
Orizzonte: Orizzonte is another major project by the Horizon Group in in Greater Noida’s Knowledge Park 3, where construction has been stalled and the project remains incomplete. A total of 1,800 units were set to be constructed for this project, out of which 364 were to be residential units. As per reports, bookings were made by customers in 2013, and the construction was to be finished within 3 years, with a deadline of handling over the flats by 2018. The company claimed internal feud and financial mismanagement to be the cause of the delay in construction.
Earth Towne: Launched in 2010 by Earth Infrastructure, the Earth Towne project was supposed to be completed within 3 years. The company collected crores of rupees from around 3000 buyers, many of whom invested their life savings or took on loans to buy flats in this project. Construction was halted in 2016 with no communication and the buyers filed police reports. Noida Police which investigated the project found out that funds had been diverted elsewhere through several shell companies. Some of the officials of Earth Infra and it’s managing director are now behind bars.
Gayatri Aura: Gayatri Aura is a 450 unit apartment housing project in Noida, that has remained incomplete years after it’s promised date of delivery. Launched in 2010, the project was set to be finished between 2016-2018. However, due to land disputes and farmers protesting for their compensation, the project has suffered prolonged delays in construction. As of 2019, the UP Real Estate Regulatory Authority (RERA) is overseeing construction.
Festival City: The Festival City project in Noida was launched in 2012, and the construction was supposed to be finished by 2015. However, the developer defaulted on the deadline and stopped any construction thereafter. As per reports the buyers approached the UP RERA with complains, and the RERA sent legal notices to the developer. When the developer did not respond, UP RERA blacklisted the developer and de-recognised the project. UP RERA has now taken over the project and are hoping to find another developer to finish the project with consent from all the buyers.
Also Read: Thirteen Years On, Jaypee’s Homebuyers Still Waiting
