LUCKNOW | NOIDA: The Uttar Pradesh cabinet on Tuesday approved the implementation of recommendations from the Amitabh Kant Committee report on real estate projects, in a move that could bring relief to lakhs of homebuyers in the state.
The approved recommendations include providing immediate registry and sub-lease deed rights to homebuyers and benefits of ‘zero period’ to developers in terms of penalties for delay during COVID-19 from April 1, 2020 to March 31, 2022.
The approval came after a proposal of the Industrial Development Department for the resolution of legacy stalled housing projects, UP cabinet minister Suresh Kumar Khanna said during a press briefing in Lucknow.
“The cabinet has approved the implementation of the recommendations of a central committee headed by Ex CEO of Niti Ayog Amitabh Kant,” said Khanna, the state’s Minister for Finance and Parliamentary Affairs.
“For this, two main points were considered that buyers interest was taken into account. Those who have bought homes should get its possession and registry immediately,” he said.
Along with this, the Cabinet has approved implementation for ‘zero period’ relief to real estate projects as mentioned in the recommendations of the report, he said.
However, these approvals do not apply to commercial, sports or entertainment projects but to all others, the minister added.
Citing an estimate by the Indian Banks Association, there are about 4.12 lakh homes across the country which could not be completed due to the poor financial status of the developers.
“Of these stalled homes, around 2.40 lakh are in the national capital region, including Noida and Greater Noida,” Khanna said.
Some industry estimates have pegged the number of stalled homes in Noida and Greater Noida to around 1.50 lakh, with citizens’ groups and homebuyers’ associations in the twin cities frequently holding protests demanding implementation of the recommendations of the Amitabh Kant Committee report.
Khanna said if the committee’s recommendations are implemented, the interests of homebuyers will be protected and fully constructed houses will be available to homebuyers on time in stalled projects.
“This will give a boost to the economic development of the area and the Centre’s committee has been formed especially for those people who had incomplete houses in Noida, Greater Noida and NCR or those who did not get possession,” he said.
“The report of the committee has been approved today by our Council of Ministers in which the committee specifically recommended that the registration of sub-lease deeds of all the people who are residing as on date should be done immediately,” he said.
Khanna said the second point was that in the circumstances arising out of COVID-19, the benefit of ‘zero period’ should be given from April 1, 2020 to March 31, 2022.
Zero period means that no interest should be charged for that period from real estate projects, he explained.
In March, the Union Housing and Urban Affairs Ministry had set up a 14-member committee headed by former NITI Aayog CEO Amitabh Kant to examine issues related to stalled real estate projects and recommend various ways for their completion.
The panel presented the committee’s report to Union Housing and Urban Affairs Minister Hardeep Singh Puri on August 21.
In its report, the committee said it has examined the status of the pending registration/sublease deeds.
The prevalent delay in the execution of registration/subleases, despite project completion, is largely attributable to instances of builders defaulting on their dues to the relevant authorities, the report pointed out.
This has adversely affected genuine homebuyers, who have fulfilled their obligations but are yet to receive their legitimate rights, the panel said.
“In light of these findings, the committee strongly recommends immediate registration/execution of subleases in favour of these rightful home buyers. This should not be contingent on the recovery of dues from the builders. This would benefit approximately about one lakh home buyers,” the panel report said.
