In a significant move that could impact the fortunes of thousands of homebuyers in Uttar Pradesh, a central committee, headed by former Niti Aayog chief executive officer Amitabh Kant, has recommended to the Uttar Pradesh government that the three authorities – Noida, Greater Noida, and Yamuna Expressway – should allow the registry of flats without requiring developers to clear land cost dues against housing projects.
The committee’s report, aimed at addressing the issues faced by the real estate sector across the country, has been sent to the Uttar Pradesh government. The government will review the report and may make necessary changes to improve its effectiveness before giving final approval.
One of the key recommendations of the report is that authorities should prioritize flat possession and execution of the registry for buyers, allowing them to recover dues from developers later. Additionally, the report emphasizes that developers cannot impose any penalty for delayed payments on homebuyers who have already faced harassment due to project delays.
The Kant report further suggests that the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) identify projects that are complete but have not received an occupancy certificate due to developer financial dues. Once identified, UP-Rera should facilitate the issuance of occupancy certificates and enable the registry of flats in the name of homebuyers for around 300 stalled projects in Noida, Greater Noida, and Yamuna Expressway areas.
To recover dues from defaulting developers, the report proposes that authorities can take over unsold flats or undeveloped land in realty projects. Another suggestion is to allow developers facing delays to bring in new developers to complete the projects and grant an additional three years for completion without any charges.
The report aims to provide relief to builders facing a financial crisis by suggesting that authorities should not levy any penal interest on them. It also recommends that authorities issue mortgage permissions without any charges or demand for payment of old dues. Furthermore, it suggests that authorities should refrain from canceling lease-deeds of realty projects due to financial default and work under UP-Rera’s supervision.
While the report primarily favors builders, officials reveal that the three authorities are currently struggling to recover approximately ₹50,000 crore from builders involved in about 3,000 realty projects, causing significant distress to 167,000 homebuyers.
The Union housing and urban affairs ministry formed the committee in March 2023 to address real estate sector issues across the country. Before the Kant report, the UP-Rera had also made similar suggestions for ‘de-linking’ flat registry from financial dues in stalled realty projects.
Reactions from stakeholders have been positive, with realtors’ lobbying group, Confederation of Real Estate Developers Association of India (CREDAI), welcoming the practical suggestions in the report. Homebuyers are cautiously optimistic but stressed the need for real action to address the ongoing crisis in the realty sector.
The future of the real estate sector in Noida, Greater Noida, and Yamuna Expressway now hinges on the Uttar Pradesh government’s decision to either approve the report in its original form or after necessary modifications to implement the proposed recommendations. The decision is eagerly awaited by thousands of homebuyers who have been waiting for their dream homes for almost a decade.
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