Sunday, July 14, 2024

UP Cabinet Greenlights Amitabh Kant Committee’s Recommendations for Legacy Stuck Projects, Relief to Homebuyers

The Uttar Pradesh Cabinet, led by Chief Minister Yogi Adityanath, has approved the recommendations of the Amitabh Kant committee on legacy stuck projects. The move, aimed at providing relief to developers, includes significant relaxations such as a zero-period to waive interest and penalties for financial default. This decision is expected to facilitate the possession and registry of flats for homebuyers, some of whom have faced delays of almost a decade.

Suresh Kumar Khanna, the state finance minister, highlighted that numerous homebuyers in the National Capital Region (NCR), particularly in Noida and Greater Noida, have been affected by stalled projects due to the financial challenges faced by developers. The committee, headed by Amitabh Kant, proposed two key recommendations: ensuring homebuyers receive possession and completing the registry process, and providing a zero period to developers for projects disrupted during the COVID-19 pandemic.

Khanna, in a post-Cabinet press conference, stated that the Cabinet had approved and implemented these recommendations to safeguard the interests of homebuyers. The proposal, prepared by the UP government’s Industrial Development Department, outlines a zero period applicable from April 1, 2020, to March 31, 2022, to address the impact of COVID-19 disruptions on real estate projects.

The 14-member panel, formed by the Union government in March 2023 and headed by Amitabh Kant, aimed to address issues related to stuck housing projects. The proposed zero period or moratorium on payments owed by builders to land-owning authorities is intended to assist developers in improving their finances and completing delayed or stalled housing projects.

Developers collectively owe approximately Rs 46,000 crore to development authorities in Gautam Budh Nagar, with significant amounts owed to the Noida Authority and the Greater Noida Authority. The implementation of these recommendations is expected to protect the interests of homebuyers, ensuring the completion of stalled legacy projects and timely delivery of houses under delayed projects. Notably, the relaxations do not apply to commercial, sports, and entertainment-related real estate projects.

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