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Updated December 19th, 2023 at 18:14 IST

UP's nod to Amitabh Kant panel recommendations for expediting realty projects

The move will facilitate possession and registration of apartments for a large number of buyers.

Business Desk
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Amitabh Kant | Image:Official website
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The Uttar Pradesh Cabinet, headed by Chief Minister Yogi Adityanath,  has granted approval to the recommendations made by the Amitabh Kant Committee regarding long-pending housing projects. These recommendations entail several concessions for developers, such as a zero-period to exempt them from interest and penalties resulting from financial defaults, according to media reports.
The move is likely to facilitate the possession and registration of apartments for numerous homebuyers, some of whom have faced delays of almost a decade. Uttar Pradesh Finance Minister Suresh Kumar Khanna emphasised the plight of lakhs of homebuyers in the National Capital Region (NCR), particularly in Noida and Greater Noida, due to stalled projects caused by financial difficulties of developers.

Dual recommendations

Khanna explained that the Amitabh Kant Committee focused on two primary recommendations. Firstly, it advocated for homebuyers to obtain possession of their homes, with immediate execution of the registry and sub-lease deed. Secondly, the committee proposed a zero period for developers to account for project disruptions during the COVID-19 period. The Cabinet, on December 19, endorsed and implemented these recommendations to safeguard the interests of homebuyers, Khanna stated in a press conference.

The proposal related to this matter was prepared by the Industrial Development Department of the UP government and has now received Cabinet approval. The zero period will be applicable for the duration between April 1, 2020, and March 31, 2022, to address disruptions caused by the pandemic in real estate projects.
Earlier in March 2023, the Union government had established a 14-member panel, led by former NITI Aayog CEO Amitabh Kant, to address the issue of stagnant housing projects. The panel suggested a moratorium or zero period on payments owed by builders to land-owning authorities, provided they clear their dues gradually, aiming to aid developers in improving their financial situations and completing delayed projects.

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Massive developer debt

Notably, real estate developers collectively owe approximately Rs 46,000 crore to development authorities in Gautam Budh Nagar, with significant amounts owed to the Noida Authority and Greater Noida Authority. The Yamuna Expressway Authority is owed Rs 4,700 crore.
Khanna, citing estimates from the Indian Banks' Association, highlighted that there are about 4.12 lakh incomplete houses across the country in various real estate projects, with a substantial portion, around 2.4 lakh houses, awaiting completion in the NCR alone. The implementation of these relaxations is expected to protect the interests of homebuyers by facilitating the completion of stalled legacy projects and ensuring timely delivery of houses under delayed projects. Notably, these concessions will not be applicable to commercial, sports, and entertainment-related real estate projects.

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Published December 19th, 2023 at 18:12 IST

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