Developers want modalities for takeover, finance of stressed projects in Gurugram

Bankers present at the workshop said that they had no problem funding those projects that were deemed viable and where the title of the projects and the track record of the promoters were clean.

Developers in Gurugram want the state government to develop a mechanism for taking over and completing stressed projects, which are stuck due to cash crunch, litigation or other reasons. The issue was raised during a seminar organised by the National Real Estate Development Council (NAREDCO), Haryana, in which bankers and representatives from the government and the Haryana Real Estate Regulatory Authority (H-RERA) were present. Representatives from the realty sector also asked the bankers to work out modalities to ease lending for projects that can be completed and handed over to home buyers.

Bankers present at the workshop said that they had no problem funding those projects that were deemed viable and where the title of the projects and the track record of the promoters were clean. (HT PHOTO/Representative Picture)

Pradeep Jain, president, NAREDCO, Haryana, said that a large number of real estate projects, which are stuck, can be completed if the authorities create a legal way to transfer a stressed asset. “There are several issues such as third party rights, penalties payable, fees to be paid to the government and other legal issues that need to be tackled. If such issues are resolved, many people can get the possession of their homes,” he added.

Bankers present at the workshop said that they had no problem funding those projects that were deemed viable and where the title of the projects and the track record of the promoters were clean. “The housing sector is going through a structural change as the majority of buyers are now end users. The market is slowly improving and we are providing funds only to genuine buyers and developers,” said Susheel Khanna, assistant general manager, SBI.

Samir Kumar, member, H-RERA, Gurugram, while addressing the gathering, said that all the stakeholders must initiate confidence-building measures so that buyers again start trusting the realty sector as a whole. “Developers must have good managerial and technical teams as real estate projects are complex and need expertise for execution,” he said.

Sudhir Chauhan, senior town planner, Gururgam, said that the department was in the process of creating online systems for approving building plans for housing projects. “If there is any suggestion on easing norms, then we would definitely look into the matter,” he added.