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Relief For Homebuyers: Government Looking Into Setting Up Fund For Completing Stalled Projects
An under construction Amrapali Group building from 2011. (Photo by Pradeep Gaur/Mint via Getty Images)
Following a Supreme Court decision to hand over the execution of Amrapali group’s stalled projects to the government-run National Buildings Construction Corporation (NBCC), the Finance Ministry is now looking into setting up a stressed projects fund to complete such projects, The New Indian Express has reported.
“The Finance Ministry is considering to set up separate stress fund. There would be a separate high level meeting, under the chairmanship of the cabinet secretary, in the next few weeks to discuss setting up the fund,” said a source from the Finance Ministry quoted in the TNIE report.
The decision comes in the backdrop of the Amripali case, where homebuyers were left in the lurch after the group had went bankrupt. Several of its projects, partly funded by homebuyer money were stalled as a result. The state-owned NBCC had then proposed to complete Amrapali’s 16 stuck projects, comprising 46,575 flats, within 36 months at a construction cost of Rs 8,500 crore.
Representatives of homebuyers as well as developers had separately met the Finance Ministry officials to discuss the issue. While the fund value is yet to be decided, the stakeholders have reportedly proposed a fund size of Rs 10,000 crore to meet the requirements.
Across India, 4.4 lakh housing units with an estimated worth Rs 3.1 lakh crore are currently facing delays, said a study by real estate data analytics firm PropEquity as quoted in the report.
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