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UP approves Amitabh Kant Committee recommendations for delayed projects. Top 5 things buyers should know
The Uttar Pradesh Cabinet, on December 19, gave the nod to the recommendations set forth by the Amitabh Kant committee
In a bid to address the long-standing issue of delayed real estate projects in Noida, Greater Noida, and the Yamuna Expressway, the Uttar Pradesh Cabinet, on December 19, gave the nod to the recommendations set forth by the Amitabh Kant committee.
This move aims to bring relief to countless homebuyers who have been awaiting possession of their homes, some for over a decade. Below are five key points for homebuyers.
Exclusive Focus on Stalled Housing Projects
— The policy specifically caters to stalled housing projects, aiming to assist homebuyers who are unable to gain possession or register their properties due to developers' financial defaults.
— Notably, the scheme excludes stalled commercial projects, group housing schemes under development, Sports City in Noida and Greater Noida, as well as institutional and industrial projects.
— Manoj Kumar Singh, UP's additional chief secretary and chairman of Noida and Greater Noida authorities, clarified that the policy targets facilitating registry or possession in stalled housing projects, with Sports City concerns addressed separately.
Realtors Urged to Pass on Waivers to Homebuyers
— The committee's suggestion to waive penal interest for the period between April 2020 and March 2023 due to pandemic effects has been accepted.
— However, this waiver won't apply to commercial, entertainment, or recreational projects, including Sports City, as stated by UP's finance minister Suresh Kumar Khanna.
— Singh highlighted the need for realtors to transfer these benefits to homebuyers and emphasized collaboration among stakeholders for effective scheme implementation.
Recourse for Homebuyers if Waivers Aren't Passed On
— Developers are mandated to clear financial dues within 60 days for project registration.
— The government has directed relevant authorities to ensure timely payments, engage independent auditors for financial assessments, and expedite flat registrations within three months.
— Lokesh M, CEO of the Noida Authority, affirmed their readiness to comply with the government directive.
Co-Developer Option for Project Completion
— The scheme allows for co-developers to take charge of stalled projects, completing them under the new policy.
— Developers failing to meet financial obligations may face project cancellation or seizure of commercial segments by the Authority for dues recovery.
Registration Linked to Financial Dues
— Contrary to the Kant committee's suggestion to unlink registration from financial dues in stalled projects, the UP government mandates developers to clear 25% of total dues for property registration.
— Permission for registering housing units will be granted incrementally, with failure to pay the remaining 75% resulting in permission revocation.
The Uttar Pradesh government's decision to endorse the Kant committee's recommendations aims to provide a structured framework for addressing the plight of homebuyers affected by protracted delays in the delivery of their dream homes.
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Business NewsNewsIndiaUP approves Amitabh Kant Committee recommendations for delayed projects. Top 5 things buyers should know
First Published:23 Dec 2023, 12:58 PM IST
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