Incomplete projects continue to reel under liquidity crisis4 min read . Updated: 18 Aug 2019, 11:22 PM IST
- Assess the developer’s financial situation before booking an apartment in an under-construction project
- Lack of funding to developers will directly affect the completion of projects that are under construction
Last week’s Supreme Court order giving homebuyers the status of financial creditors in the Amrapali group case was a welcome move, on the face of it. However, peel off a few layers and you will find it hides a new challenge for both homebuyers and the already-stressed-for-liquidity developers. Now that banks and financial institutions can’t have the sole claim on the money recovered from errant developers, they would be doubly cautious before funding projects. This may hit the supply of new units as well as the execution of under-construction projects. We tell you what this means for homebuyers, but first let’s understand what is this liquidity crunch all about.
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