December 15, 2023: As on November 16, 2023, 342 proposals aggregating Rs 37,554 crore have been approved under the Centre’s Special Window for Completion of Affordable and Mid-Income Housing (SWAMIH) investment fund, Parliament was informed on December 14.
While stating that such projects include those declared as non-performing assets (NPAs) or those pending before the National Company Law Tribunal under the Insolvency and Bankruptcy Code, minister of state in the housing ministry Kaushal Kishore informed that the move would benefit around 2,18,699 homebuyers and unlock projects worth Rs 94,367 crore.
To give relief to homebuyers of stalled projects, the Centre established the investment fund for providing monetary support for stalled projects that are net-worth positive and registered under the RERA.
While land is a state subject, the Centre also launched the real estate law in 2016 to safeguard the interest of homebuyers, the minister added in his statement.
“To protect the interest of homebuyers and to ensure transparency and accountability in the Real Estate Sector, Parliament has enacted the Real Estate (Regulation and Development) Act, 2016 [RERA]. Under the provisions of RERA, the real estate projects are required to be registered with the Real Estate Regulatory Authority of the State/Union Territory (UT) concerned,” Kishore informed the Lok Sabha in a written reply.
“On lapse or revocation of the registration under the RERA, the regulatory authority in consultation with the appropriate government is empowered to take action for carrying out the remaining development works of the project by competent authority or by the association of allottees or in any other manner, as may be determined by the authority,” he added.
According to the minister, the government had also constituted a committee under the chairmanship of Amitabh Kant to examine the issues related to legacy stalled real estate projects.
“The committee submitted its report in July 2023 in which it has recommended various measures to complete these stalled projects and handover the same to the homebuyers. The committee observed that the primary reason for stress in real estate projects is lack of financial viability,” he said.
The committee recommended a slew of measures aimed towards improving the financial viability of stalled real estate projects to enable their completion. The report of the committee has been sent to states and all the stakeholders concerned, Kishore added.
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An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
sunita.mishra@proptiger.com
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