In what seems to be sigh of relief for thousands of distressed home buyers of Noida and Greater Noida, UPRERA will soon come up with a stress fund to aid stalled projects.
Indian real estate is struggling with stalled projects with no ray of hope in the near future. While the problem is present in every of the top seven cities, Noida and Greater Noida seems to be topping the charts. While there are about 5.6 lakh residential units stuck across top seven cities, over two lakh units are from NCR itself.
To bring some relief to the buyers stuck in these projects, UPRERA will soon kick start a stress fund which will aid in completing all projects which have been stuck. The body will soon present a proposal at the board meeting after which the idea will be forwarded for the approval of UP government, Times Of India reported.
If the proposal sees the light of the day, it will be a huge respite for those homebuyers who had booked homes with now dysfunctional realty companies like Amrapali Group, Jaypee Infratech and 3C. There are about 30,741 units in Amrapalli that are lying in limbo while Jaypee has 22,500 and 3C has 6,500 such stalled homes.
Most of these developers have allegedly diverted the buyers’ money and are now left with nothing to complete the project. While court proceedings are undergoing in the case of some developers, it is the home buyers who are at the receiving end with the loss of both lifetime savings as well as the hope of a home.
Earlier in June, the Forum for People’s Collectiv Efforts, an apex body of home buyers, had urged the state government to set up a Rs. 10, 000 crore stress fund to complete pending projects in next five years. The forum had also suggested to strip off personal and company assets of these developers and promoters to recover whatever amount to complete the unfinished projects.
Apart from these big names, there are many other small projects in Noida and Greater Noida that are in an abysmal financial state. Unless and until there is a government intervention, the fate of these homes and their buyers’ investment will continue to remain uncertain.
More about Noida real estate market here.