Nearly 2.5 lakh homebuyers to benefit as Amitabh Kant committee recommendations get UP govt nod

The move is expected to benefit close to 2.40 lakh homebuyers in Noida and Greater Noida region that accounts for over 35% of total delayed housing units

The Uttar Pradesh Cabinet on December 19 approved the recommendations of Amitabh Kant committee on delayed real estate projects, bringing relief to lakhs of aggrieved homebuyers who have been waiting to receive possession of their homes, some of which are stuck for more than a decade.

The Uttar Pradesh Cabinet on December 19 approved the recommendations of Amitabh Kant committee on delayed real estate projects, bringing relief to aggrieved homebuyers who have been waiting to receive possession of their homes, some of which are stuck for more than a decade. (Parveen Kumar / HT Photo)

Real estate experts, developers and homebuyers welcomed the move.

"The cabinet has approved the implementation of the recommendations of a central committee headed by Ex CEO of Niti Aayog Amitabh Kant," said Suresh Kumar Khanna, the state's Minister for Finance and Parliamentary Affairs.

"For this, two main points were considered - that buyers interest be taken into account. Those who have bought homes should get possession and registry of their homes immediately," he said.

Along with this, the Cabinet has approved implementation for 'zero period' relief to homebuyers as mentioned in the recommendations of the report, he said. However, these approvals do not apply to commercial, sports or entertainment projects but to all others, the minister added.

Citing an estimate by the Indian Banks Association, there are about 4.12 lakh homes across the country which could not be completed due to the poor financial status of the developers.

"Of these stalled homes, around 2.40 lakh are in the national capital region, including Noida and Greater Noida," Khanna said.

“The implementation of these recommendations will protect the interests of homebuyers and also help complete stalled legacy projects,” he said.

Real estate experts welcome move

Real estate experts and developers across Noida, Greater Noida and Ghaziabad welcomed the Uttar Pradesh cabinet’s decision to approve the recommendations of the Amitabh Kant Committee’s recommendations on delayed projects, saying that the step would directly benefit close to 2.40 lakh homebuyers in the NCR region.

“Project delays have been the bane of the Indian real estate sector over the last decade. In the initial years post the implementation of RERA, the Act's impact was relatively low, but the winds of change blew stronger when the government created the Alternate Investment Fund (AIF) in late 2019, with a corpus of ₹25,000 crore. This last-mile capitalization mechanism, couched in the SWAMIH fund, has proved to be effective in getting stuck projects going again,” said Santhosh Kumar, Vice Chairman - ANAROCK Group.

Now the UP cabinet’s approval of the recommendations of the Amitabh Kant committee on stalled projects will bring much relief for aggrieved buyers. Notably, Noida and Greater Noida in UP had the maximum concentration of stalled and delayed residentials projects in the country. Both these areas account for more than 35% of the total delayed units across top 7 cities, he said.

“The step directly benefits as many as 2.40 lakh homebuyers in the National Capital Region (NCR). With the exemption of interest during the zero period, many flat owners can now proceed with the registration of their homes without additional financial burden,” said Manoj Gaur, president, CREDAI NCR and CMD Gaurs Group.

“The move will pave the way for increased confidence among homebuyers, stimulate investment, and contribute significantly to the growth of the real estate sector. Such proactive measures are integral to building a robust foundation for sustained development and progress,” he said.

The UP government’s decision to bring real estate projects into the ambit of the zero period and exempt them from interest charges is a positive development that is expected to benefit several real estate stakeholders across NCR.

“All stakeholders, including financial institutions, authorities, state exchequers, and developers, stand to gain from the decision. Homebuyers will get their homes delivered and registered. Authorities will receive their dues, and state exchequers would benefit from increased revenues from registration of properties. The move will also help many developers turn net positive,” said Amit Modi, director, County Group.

The approval of Amitabh Kant committee’s recommendations by the UP Cabinet will help revitalize stalled real estate projects located in Noida, Greater Noida and along Yamuna Expressway. This will rekindle confidence among homebuyers, encouraging renewed investment in the sector, said Piyush Bothra, Co-Founder and CFO, Square Yards.

Abhishek Kumar, president of the Noida Extension Flat Owners' Association (NEFOWA), welcomed the move and hoped that it would resolve all issues faced by homebuyers.

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The Amitabh Kant-led committee was set up by the housing ministry to look into the issue of legacy stressed projects in March this year. It had recommended de-linking registration of projects from the recovery of dues from builders. It had also said that the primary reason for stress in real estate projects is lack of financial viability and that judicial interventions such as the insolvency code should be used as the last resort.