The Uttar Pradesh Cabinet on December 19 approved the Amitabh Kant Committee’s recommendations on delay in real estate projects, providing relief to lakhs of distressed homebuyers awaiting ownership of their homes. Some of them have been there for more than 10 years.
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Real estate experts, developers and home buyers welcomed the move.
“The cabinet has approved implementation of the recommendations of the central committee headed by former CEO Niti Aayog Amitabh Kant,” said Suresh Kumar Khanna, the state’s finance and parliamentary affairs minister.
“For this, two main points were taken into account: taking into account the interests of the buyers. Those who have bought a house should immediately obtain the title and registration of the house,” he said.
Accordingly, the Cabinet has approved the implementation of “zero period” relief for homebuyers as mentioned in the report’s recommendations, he said. However, these approvals do not apply to commercial, sports and entertainment projects, but to all other projects, the minister added.
Citing estimates from the Indian Banks Association, there are approximately 4.12 million housing units across the country that could not be completed due to poor financial conditions of developers.
“Of these stranded houses, around 240,000 are in the National Capital Region, including Noida and Greater Noida,” Khanna said.
“Implementation of these recommendations will protect the interests of homebuyers and will also help in completing stalled legacy projects,” he said.
Real estate professionals welcome movers
Real estate experts and developers in Noida, Greater Noida and Ghaziabad have welcomed the Uttar Pradesh Cabinet’s decision to approve the Amitabh Kant Committee’s recommendations on delayed projects, saying the move It said it would directly benefit nearly 240,000 homebuyers in the region.
“Project delays have been a bane for the Indian real estate sector for the past decade. In the first few years after RERA came into force, the law had a relatively small impact, but the government announced that the Alternative Investment Fund (AIF), the winds of change blew even stronger. INR25,000 billion. This last mile capitalization mechanism incorporated in the SWAMIH Fund has proven to be effective in restarting stalled projects,” said Mr. Santosh Kumar, Vice Chairman, ANAROCK Group.
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Now, the UP cabinet’s approval of the Amitabh Kant committee’s recommendations on stalled projects will come as a huge relief to distressed buyers. In particular, Noida and Greater Noida in UP had the highest concentration of stalled or delayed housing projects in the country. Both of these regions account for more than 35% of his total delayed units across the top seven cities, he said.
“This measure will directly benefit as many as 240,000 homebuyers in the National Capital Region (NCR). With the interest waived during the zero period, many apartment owners will be able to afford it without any additional financial burden. We can now proceed with the registration of houses,” said Manoj Gaur, President, CREDAI NCR and CMD Gaurs Group.
“This move will increase homebuyer confidence, stimulate investment and contribute significantly to the growth of the real estate sector. Such proactive measures will create a solid foundation for sustainable development and progress. “It’s essential to building,” he said.
The UP government’s decision to bring real estate projects under the ambit of zero period and waive interest is a positive development that is expected to benefit several real estate stakeholders across the NCR.
“All stakeholders, including financial institutions, authorities, the National Treasury and developers, stand to benefit from this decision. Homebuyers will have their homes delivered and registered. The authorities will receive dues and the state treasury will The ministry will benefit from increased revenue from registration of properties. This move will also help many developers earn net profits,” said Amit Modi, Director, County Group. .
Approval of the Amitabh Kant Committee’s recommendations by the UP Cabinet will help in revitalizing stalled real estate projects along Noida, Greater Noida and Yamuna Expressway. This will reignite homebuyer confidence and encourage new investments in the sector, said Piyush Bhosra, co-founder and CFO of Square Yard.
Noida Extension Apartment Owners Association (NEFOWA) President Abhishek Kumar welcomed the move and hoped that all the issues faced by homebuyers would be resolved.
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The Amitabh Kant-led committee was set up by the housing ministry in March this year to look into the issue of heritage focus projects. The government had recommended decoupling the registration of projects and collection of dues from builders. It also said that the main reason for stress in real estate projects is lack of financial viability and that judicial intervention, such as bankruptcy law, should be used as a last resort.