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Noida: The Uttar Pradesh The Real Estate Regulatory Authority has recommended to the state government that the registry of flats in completed real estate projects be delinked from the dues of builders. Noida and Greater Noida Authority so that home buyers can get relief.
The impasse between development authorities and builders over dues of over Rs 39,000 crore has kept nearly 40,000 homebuyers in the two cities waiting for years for the registry of their flats.
In its report on the status of real estate projects and measures to revive them, UP-RERA It suggested that Noida and Greater Noida authorities have the power to recover dues by seeking security in other projects or personal properties of developers or by issuing recovery certificates.
UP-RERA Speaker Rajeev Kumar said the report was submitted to the state government last week. He said the regulatory authority had in April this year hired a consultant to prepare a report suggesting a possible roadmap, as the impasse stalled registries in residential societies in Noida.
The report classified over 200 housing projects on the basis of their physical and financial condition. Of them, UP-RERA studied eight projects and found six of them “viable and could be revived”. Apart from completed projects, the report also talks of two types of stalled projects: one where no work has been done for years and others which are delayed due to lack of liquidity but are viable at the moment. Over 1.25 lakh homebuyers have been affected due to stalled projects in both the cities.
The report suggested that the Noida and Greater Noida authorities may cancel land allotments and resell stalled projects without any possibility of revival. It added that the authorities may also auction the builder’s properties to protect the interest of home buyers.
In case of stalled but viable projects, it said authorities may introduce a co-developer policy, wherein another developer will take over a project, complete it and pay the dues. Such co-developers may be provided incentives such as interest rate concession. Other measures include allowing builders to surrender land or take control of surplus land for sale to recover dues.
The report highlights the need for both the authorities to assess the projects on a case-by-case basis considering their unique problems. It suggests adopting a flexible approach rather than applying a uniform rule.
Some projects can be completed, Kumar said, if the authorities provide them support in terms of zero period for the time taken to complete the construction, such as the COVID-19 pandemic and the NGT repeatedly banning construction. ordered to be installed.
The report also proposes a reverse corporate insolvency resolution process (CIRP) for projects that are under insolvency proceedings in the National Company Law Tribunal (NCLT), where a promoter is required to revive the company and act as a lender or financial creditor. is given the opportunity to do so.
The ability of the authorities to recover their dues in NCLT cases is currently limited to about 30%.
UP-RERA has also stressed on the importance of not taking hard decisions on projects that are being completed from SWAMIH (Special Window for Affordable and Mid-Income Housing) funds.
“Now is the right time to intervene and take measures to revive the real estate industry in the region. The market is improving, so the measures taken by the government will have the most impact. The positive environment will not only boost the confidence of developers but also Lakhs of home buyers will also get relief. Rare Looking for ways to solve the problems of real estate in Noida, said the chairman. At the national level, the Union Ministry of Housing and Urban Affairs has constituted a committee headed by Amitabh Kant, former CEO of NITI Aayog, to resolve the impasse on stalled housing projects across the country.
The realtor, too, has sought a waiver of the penal interest accrued by him in the years he has defaulted in payment. Earlier, they met Kumar and Infrastructure and Industrial Development Commissioner (IIDC) Manoj Kumar Singh over their demands.
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