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reserve Bank of India ,reserve Bank of India) may consider providing a “special dispensation” to banks to enable them to provide additional finance to restructured customers home loan The accounts to help complete the stuck housing projects, said people familiar with the development.
In a June 19 meeting of a committee set up under G20 Sherpa Amitabh Kant to examine issues related to “legacy stuck projects” in real estate, lenders sought a special regulator to release additional funds through existing individual home loan accounts. demanded arrangements, which are either reorganized. or revived, while retaining the asset classification as ‘standard’, a person who attended the meeting told ET.
“The RBI representative present in the meeting has assured that the banking regulator will consider the special dispensation and they are considering it. It is likely to inform (the panel) about its decision soon,” he said.
Any such regulatory relief, he said, could enable banks to disburse the balance amount of sanctioned loans – which were not released earlier after construction of flats got stuck – without diminution in asset quality.
Queries sent to RBI remained unanswered till the filing of this report.
It was also revealed in the meeting that the National Capital Region and Mumbai It was estimated that alone accounts for nearly two-thirds of the total stalled housing projects in the country. Moreover, around 60% of the stalled units were bought by home buyers with a capital commitment of around Rs 2 lakh crore.
The meeting was also attended by Insolvency and Bankruptcy Board of India Chairman Ravi Mittal, Financial Services Secretary Vivek Joshi, senior officials from the Ministry of Finance and Housing and Urban Affairs, RBI representative and Chief Executive Officer (CEO) of Noida Authority. Banks Association (IBA) and SBICAP Ventures, among others.
Officials had earlier said that the government is considering a multi-pronged approach – involving the Real Estate Regulatory Authority and the SWAMI (Special Window for Affordable and Mid-Income Housing) Fund apart from the IBC for last-mile financing. Resolving tension involves. housing projects to ensure speedy delivery of homes to the buyers. This approach also includes an innovative IBC mechanism for housing.
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