COVER STORY/ECOSYESTEM
Committee Headed by Amitabh Kant Submits Report to Revive Stalled Real Estate Projects
New Delhi, 22nd August 2023: A committee chaired by former NITI Aayog CEO Amitabh Kant has submitted a conclusive report with the aim of resolving the deadlock surrounding inactive real estate projects nationwide. The committee’s investigation has identified a dearth of financial feasibility as the central factor contributing to the distress in these projects. The comprehensive report contains crucial suggestions formulated to tackle the hurdles faced by housing initiatives that are currently at a standstill.
Committee Headed by Amitabh Kant Submits Report to Revive Stalled Real Estate Projects
1. The committee emphasizes swift registration and execution of subleases for homebuyers, without waiting for dues recovery from builders.
2. Stress in real estate projects mainly stems from financial instability, according to the committee’s findings.
3. The committee proposes obligatory registration of all projects under RERA for better regulation.
4. Immediate action is suggested to alleviate the real estate industry’s challenges, focusing on homebuyer interests and project viability.
Benefits
- The committee aims to benefit approximately 100,000 homebuyers by implementing these measures.
- To tackle the issue of outstanding dues from defaulting builders, the committee suggests strong actions for recovery.
- The committee recommends direct collection of overdue payments from homebuyers by RERA, bypassing builders.
- For faster resolution, the committee proposes granting occupancy of substantially completed projects within 30 days.
- To accelerate distressed housing project completion, the committee advises state governments to announce tailored packages.
- Developers choosing this package must commit to completing projects within three years, as per the committee’s recommendation.
- This model package could prove beneficial for areas like Noida and Greater Noida, according to the committee’s optimism.
- To facilitate financial aid, the committee suggests including stalled projects in property sector financing.
- The Ministry of Housing and Urban Affairs (MOHUA) should devise a scheme and approach the finance ministry, suggests the committee.
- Additionally, the committee proposes subsidized interest rates or a guarantee scheme similar to the MSME sector for added support.
