Thirty-five per cent of India's stalled residential projects having 1.65 lakh flats worth a total of Rs 1.18 lakh crore are in Uttar Pradesh's Noida and Greater Noida, according to a white paper released on November 26. Besides, there are at least one lakh individuals who are still waiting to register their flats while nearly 60,000 others are yet to be handed flats long after their possession date, stated the white paper, issued by citizens' platform Noida Dialogue and private body Namo Seva Kendra.
BJP national vice president Gopal Krishna Agarwal on Sunday unveiled the 'White Paper on Homebuyers Issues in Gautam Buddh Nagar (Uttar Pradesh)' during a programme in Greater Noida West in presence of scores of aggrieved investors. He called for resolution of the long-pending issues of homebuyers, emphasizing the action as suggested in the white paper would come from both the Centre as well as the Uttar Pradesh government.
More than 850 residential projects have been inaugurated in the Gautam Buddh Nagar district since 2011, of which around 90 per cent of the projects come under the purview of Noida Authority, Greater Noida Authority, and Yamuna Expressway Development Authority (UP RERA annual report, 2020). Property consultant Anarock ranks Noida as the worst city in terms of projects stalled as 35 per cent of the stalled residential projects in the country are from Noida-Greater Noida region, the white paper stated. Their analysis figures out that projects which comprise around 1.65 lakh units are yet to be completed fully and their combined value is worth as high as Rs 1.18 lakh crore. Our analysis on Uttar Pradesh's RERA report indicates that more than 50 per cent such projects are stalled for more than three years over the proposed completion time. As many as 27,992 complaints from homebuyers have been registered on the UP RERA portal, recording the highest in the country as of 2020, it added.
The white paper further said that as per the report at present, there are at least one lakh individuals who are still waiting to register their flats while nearly 60,000 others are yet to be handed flats long after their possession date. These buyers have a twin financial burden on their shoulders, continue paying EMIs for their incomplete flats and bear the hefty rent of their houses where they stay at the moment, it noted.
The white paper, which has sourced information from public and private entities and feedback from homebuyers, seeks to identify the problem, the root cause for it, cites legal case studies and their judgments and suggests possible way forward to mitigate the woes of homebuyers. The whole resolution process has to be ring fenced from any potential legal challenges. The stalled projects will first have to be made viable for future investors for any acceptable resolution bid. The main problem lies in the legacy issue of allotment of land on lease by authorities to the developers on instalment payment, levying compound interest and hefty penalties for default thereof, it stated.
The overleveraged developers, supported by multiple financing options on single piece of land, compounded the problem. The unholy nexus of previous governments in power can now be undone through haircuts alone. The above recommended solutions have to be implemented by the government with political will, it added. Agarwal, also BJP's spokesperson on economic affairs, said the governments at the Centre and in UP have been working for the homebuyers and are committed to resolving the issues.
Through this white paper, we have tried to bring forth the problem and its solution. If everyone is convinced with the solution, then we can take it ahead to talk with authorities for its implementation, he told reporters. He said the BJP-led Central government has taken several measures like RERA Act, Insolvency and Bankruptcy Code (IBC), and the SWAMIH (Special Window for Affordable and Mid-Income Housing) fund to address the homebuyers' issues and is further working to expedite the resolution.
These are legacy issues which were created during previous governments. Now, we are looking forward to the solution of the issues, Agarwal added.
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