Updated December 26th, 2023 at 15:46 IST
5 silver linings from UP's easing of stalled realty projects
Uttar Pradesh Cabinet approves Amitabh Kant Committee's recommendations for real estate project delays, signalling five key takeaways for homebuyers.
In a move to address the prolonged delays in real estate projects across Noida, Greater Noida, and the Yamuna Expressway, the Uttar Pradesh Cabinet has approved recommendations proposed by the Amitabh Kant Committee. This step, taken earlier this week, aims to provide relief to countless homebuyers awaiting for possession of their homes, with some facing delays of over a decade. Here are the top five highlights that homebuyers should be mindful of in the wake of this positive development.
Targeted emphasis on unfinished housing projects
- The policy is specifically designed for stalled housing projects, aiming to assist homebuyers who face challenges in gaining possession or registering their properties due to financial defaults by developers.
- The scheme excludes stalled commercial projects, group housing schemes under development, Sports City in Noida and Greater Noida, as well as institutional and industrial projects.
- The policy aims to facilitate registry or possession of stalled housing projects, with Sports City concerns addressed separately.
Developers encouraged to pass on benefits to homebuyers
- The Committee's recommendation to waive penal interest for the period between April 2020 and March 2023, due to pandemic effects, has been accepted.
- However, this waiver does not apply to commercial, entertainment, or recreational projects, including Sports City.
- Realtors are encouraged to transfer these benefits to homebuyers, with collaboration amongst stakeholders emphasised for effective scheme implementation.
Safeguards for homebuyers if benefits aren not transferred
- Developers are required to clear financial dues within 60 days for project registration.
- The government has instructed relevant authorities to ensure timely payments, engage independent auditors for financial assessments, and expedite flat registrations within three months.
- The Noida Authority CEO affirmed their readiness to comply with the government directive.
Collaboration with co-developers for project fulfilment
- The scheme allows for co-developers to take charge of stalled projects, completing them under the new policy.
- Developers failing to meet financial obligations may face project cancellation or seizure of commercial segments by the Authority for dues recovery.
Registration tied to financial settlements
- In contrast to the Kant Committee's suggestion to unlink registration from financial dues in stalled projects, the UP government mandates developers to clear 25 per cent of total dues for property registration.
- Permission for registering housing units will be granted incrementally, with failure to pay the remaining 75 per cent resulting in permission revocation.
The Uttar Pradesh government's nod to the Kant committee's recommendations is a step towards providing a structured framework to address the challenges faced by homebuyers affected by prolonged delays in the delivery of their homes.
Published December 23rd, 2023 at 21:16 IST