The recent nod by the Uttar Pradesh Cabinet on December 19 to the proposals outlined by the Amitabh Kant committee regarding stalled real estate projects brings much-needed relief to homebuyers facing prolonged wait times for possession of their residences, some left in limbo for over a decade.
Suresh Kumar Khanna, the state’s Minister for Finance and Parliamentary Affairs, underscored the significance of prioritizing buyers’ interests based on the recommendations from the committee headed by former Niti Aayog CEO Amitabh Kant. Key priorities include swift possession and registry processes for home purchasers.
It’s important to note that while this approval excludes commercial, sports, or entertainment projects, it encompasses all other stalled residential projects, ensuring broader coverage, as confirmed by the minister.
The Indian Banks Association estimates that approximately 4.12 lakh homes nationwide remain unfinished due to financial constraints faced by developers. Minister Khanna stressed that among these, about 2.40 lakh homes are in the national capital region, including Noida and Greater Noida.
The implementation of these recommendations aims to safeguard homebuyers’ interests and expedite the completion of pending projects, providing relief to an estimated 2.40 lakh homebuyers in the NCR region.
Reactions from real estate professionals and industry experts have been overwhelmingly positive, expressing optimism about the decision’s substantial impact on the local real estate market.
Santhosh Kumar, Vice Chairman of ANAROCK Group, acknowledged the long-standing challenge of project delays in the real estate sector and commended interventions like the SWAMIH fund for their effectiveness.
Manoj Gaur, President of CREDAI NCR and CMD Gaurs Group, highlighted the considerable relief this decision brings to flat owners, particularly with the interest exemption during the zero period, simplifying home registrations.
Amit Modi, Director at County Group, emphasized the wide-ranging benefits this decision would deliver to various stakeholders engaged in real estate projects.
Industry experts foresee this move instilling confidence among homebuyers, attracting investments, and substantially contributing to the growth of the real estate sector.
The Amitabh Kant-led committee, initiated earlier in the year by the housing ministry, proposed strategies to alleviate stress in real estate projects, emphasizing the separation of project registration from dues recovery from builders. The committee underscored the importance of using legal measures such as the insolvency code only as a last resort to tackle financial viability issues in the sector.
(Source: Hindustan Times)
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