the state government has already sought the opinions from all relevant departments, including three industrial authorities of Noida, Greater Noida and the Yamuna Expressway, where at least 200,000 homebuyers are awaiting their apartment registries
The Uttar Pradesh cabinet is likely to approve a new policy to address homebuyers’ woes following the recommendations of a central government appointed committee, headed by former NITI Aayog chairman Amitabh Kant, which suggested ways to revive the realty sector that faces multiple issues across the country and particularly in the National Capital Region (NCR).
The Uttar Pradesh cabinet,which is to meet on November 28 in Lucknow, is likely to approve the policy as the state government has already sought the opinions from all relevant departments, including three industrial authorities of Noida, Greater Noida and the Yamuna Expressway, where at least 200,000 homebuyers are awaiting their apartment registries, which have been blocked due to financial defaults on the part of realtors, said officials.
“The Uttar Pradesh government’s industries department has already discussed and taken written feedback on the Kant report from the Noida, Greater Noida and the Yamuna Expressway authorities. The discussions about the financial implications of the new policy have already been completed. Now the cabinet will discuss all provisions of the new policy and then approve it to address the issues that the realty sector is facing,” said a Greater Noida authority official, not authorised to speak to media.
After the central government appointed committee submitted its recommendations, the Greater Noida, Noida authority and the Yamuna Expressway authorities conducted surveys to collect details of each stalled project and then sent them to the state government. Later, additional chief secretary Manoj Kumar Singh, who is also Uttar Pradesh infrastructure and industrial development commissioner, held discussions on the impact that a policy on will have on the financial status of three authorities because at least ₹60,000 crore is owed to the three authorities by realtors, said officials.
“Now the industry department has placed all survey reports, feedback and relevant data before the industries ministry for the cabinet approval,” said the official quoted above, asking not to be named.
Officials of the three authorities hope that the government will announce a ”real estate rehabilitation and revival package” that is aimed at not only ending the woes of homebuyers but also handhold realtors, who want to deliver stuck projects.
“This package may include waivers on interest imposed on the financial default, delinking of registry from financial defaults, co-developer policy to facilitate the completion of stalled projects and waiver on interest for the period when the construction was halted due to a land dispute, among other benefits. The package may be approved in line with the recommendations put forth by the Central government-appointed high-level committee aimed at resolving issues surrounding delayed projects,” said the official.
Sources said a cabinet note outlining the package has already been prepared with inputs, objections, and recommendations from various departments. A decision from the cabinet regarding this policy is expected to be announced next week, said officials.
“The UP government’s relief package is a much needed stimulus that the realty sector requires urgently in view of the ongoing crisis that is being faced not only homebuyers but also realtors. We hope that the government’s new policy will revive the sector and create a positive sentiment in the market,” said Subodh Goyal, legal committee, Confederation of Real Estate Developers Association of India (CREDAI), a realtors’ lobbying group.
- Amitabh Kant