On Tuesday, the Uttar Pradesh government announced significant relief for homebuyers in NOIDA, Greater NOIDA, and the NCR region. Suresh Kumar Khanna, the Uttar Pradesh finance and parliamentary affairs minister, revealed that in a meeting held on Tuesday, the UP cabinet approved the implementation of recommendations made by the committee chaired by Amitabh Kant, the former CEO of Niti Ayog, on Legacy Stalled Real Estate Projects.
Key Points
- The UP cabinet gave its nod to recommendations from the Amitabh Kant committee, formed to address stalled real estate projects.
- Homebuyers with incomplete properties will benefit from faster possession and registration, protecting their interests.
- Interest accumulated during the “zero period” (April 2020 to March 2023) due to pandemic lockdowns will be waived, except for commercial, sports, and entertainment projects.
- This move aims to incentivize builders to complete housing projects on time and boost economic activity in the state.
- Around 2.40 lakh houses in the NCR region alone can benefit from this initiative, bringing relief to countless buyers.
Updates
To safeguard the interests of homebuyers, the committee recommended immediate possession and registration of property. Additionally, the Kant Committee suggested waiving off interest during the zero period (April 2020-March 2023) announced during the pandemic. The cabinet endorsed the recommendation of interest waiver, excluding commercial, sports, and entertainment projects, Khanna explained.
IBA Report
According to a report from the Indian Bank Association, there are 4.12 lakh incomplete houses in the country due to the poor financial condition of developers. Of these, 2.40 lakh houses are in the NCR region. With the implementation of the Kant committee’s recommendation, the interests of homebuyers will be protected, enabling builders to complete housing projects on schedule and boosting economic activities in the state.
Relief will be provided to buyers whose houses in the NOIDA and Greater NOIDA region are incomplete or were unable to obtain possession. Khanna urged buyers who have purchased property to register it or complete the sublease deal promptly. No interest will be charged for the zero period during the pandemic from April 1, 2020, to March 31, 2022.
The Amitabh Kant committee, formed in 2023 by the central government, was tasked with examining stalled real estate projects and recommending ways to complete them. According to a report by the Indian Bank Association, 60% of the stalled projects had already been purchased with a capital commitment of ₹1.9 lakh crore, Khanna stated.
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