Agency (Lucknow/Noida):
The Uttar Pradesh cabinet, in a move aimed at benefiting lakhs of homebuyers, approved the implementation of recommendations from the Amitabh Kant Committee report on real estate projects. This decision was announced by UP cabinet minister Suresh Kumar Khanna during a press briefing in Lucknow.
The key recommendations approved include granting immediate registry and sub-lease deed rights to homebuyers. Additionally, developers are to receive ‘zero period’ benefits, which involve waiving penalties for delays during the COVID-19 pandemic from April 1, 2020, to March 31, 2022.
This approval follows a proposal from the Industrial Development Department to resolve legacy stalled housing projects. Khanna emphasized that the decision prioritizes buyers’ interests, ensuring they receive possession and registry of their homes promptly. However, these approvals exclude commercial, sports, or entertainment projects.
According to an Indian Banks Association estimate, around 4.12 lakh homes nationwide are incomplete due to developers’ financial struggles, with about 2.40 lakh of these in the national capital region, including Noida and Greater Noida. Industry estimates suggest that Noida and Greater Noida alone have around 1.50 lakh stalled homes.
The implementation of the Amitabh Kant Committee’s recommendations is expected to protect homebuyers’ interests and ensure timely delivery of fully constructed houses in stalled projects. This measure is anticipated to stimulate economic development in the area, especially benefiting those with incomplete houses or who have not yet received possession in Noida, Greater Noida, and the NCR.
Khanna explained that the ‘zero period’ benefit implies no interest charges for the specified period on real estate projects. This decision follows the formation of a 14-member committee by the Union Housing and Urban Affairs Ministry in March, led by former NITI Aayog CEO Amitabh Kant, to address issues related to stalled real estate projects.
The committee’s report, presented to Union Housing and Urban Affairs Minister Hardeep Singh Puri in August, highlighted the delay in registration/sublease execution despite project completion. This delay was attributed to builders defaulting on dues to authorities, adversely affecting homebuyers who have met their obligations. The committee strongly recommended immediate registration/execution of subleases in favor of these homebuyers, potentially benefiting about one lakh buyers.
This approval by the Uttar Pradesh cabinet marks a significant step towards resolving longstanding issues in the real estate sector, offering hope and relief to thousands of affected homebuyers and developers.
