Relief For Home Buyers? Government May Step In To Complete Construction And Delivery Of 300,000 Flats In Noida

The Centre, along with the Uttar Pradesh government, is planning to use unutilised land available with property developers to fasttrack the delivery of around 300,000 apartments in Noida, reports Times Of India (TOI).

A proposal to set up a stress fund with a seed capital of Rs 1,000 crore to Rs 2,000 crore is also in the works to ensure quick completion of housing projects by high-profile realtors like Jaypee Infratech, Amrapali and Lotus 3Cs.

Around 70,000 apartments, villas and plots, which are in various stages of development have been stalled due to a cash crunch in the sector. This has not only locked in the savings of middle-class home-buyers but also put them at a considerable risk.

However, some of these companies are undergoing insolvency resolution at the National Company Law Tribunal (NCLT) and the process is expected to be completed soon.

The government is also exploring the option of transferring undeveloped land available with the developers, to state-run companies like NBCC. The public sector unit (PSU) could use the transferred land as leverage and raise capital from the markets. This capital could then be used to complete the projects and hand them over to the buyers.

Worst Cheater

In December 2018, while hearing a case against Amrapali, the Supreme Court had termed the company and its promoters as “the worst kind of cheater” and “biggest liar.”

Such strong language was used by the court when the company admitted that it had diverted homebuyers' money to develop other properties like a five-star hotel in Greater Noida, malls and resorts in various parts of the country.

Also Read: Centre Demands Resolution Of Top Nine Insolvency Cases By March; Special Focus On Essar Steel, Jaypee Infratech