The empowered committee set up by the Uttar Pradesh government to look into the problem of stalled real estate projects has "discussed" the issue of state-owned National Buildings Construction Corporation (NBCC) exploring options for use of vacant land parcels in these delayed projects to fast-track their completion. The issue comes up again at the committee’s next meeting on July 10, sources told Moneycontrol.
“The issue of NBCC taking up some vacant land parcels in these delayed projects did come up for discussion at the committee’s earlier meeting. This matter was discussed but there have been no recommendations yet. We will be mentioning the issue again at the committee’s next meeting on Tuesday (July 10),” Noida Authority CEO Alok Tandon told Moneycontrol.
NBCC sources said the issue of the government’s construction arm taking up some of the vacant lands in these realty projects, many which are delayed by almost a decade and a few that are facing insolvency, did come up for discussion at the last meeting held in June.
The issue of NBCC conducting joint surveys of sites with the authorities and drawing up a report was also taken up, sources in NBCC confirmed.
Some of these stalled projects are by Unitech, Amrapali, Jaypee Group and The 3C Company
Homebuyers have welcomed the move. “All homebuyers associations had presented this proposal to the UP government last year but there was no movement on that front. We have all along said that as long as the government does not get involved, the projects will never get completed. If this does get implemented on ground then we welcome the step,” Indrish Gupta, founder of NEFOWA.
The empowered committee had held its first meeting regarding issues faced by homebuyers in Noida, Greater Noida and Yamuna Expressway areas on June 25.
The empowered committee was set up for home buyers to resolve their problems "at the earliest", Union Housing and Urban Affairs Minister Hardeep Singh Puri had said.
The committee is chaired by MoHUA secretary Durga Shanker Mishra.
In a series of tweets, Puri had said the panel comprising representatives of the Uttar Pradesh government, banks, NBCC, CEO NOIDA (New Okhla Industrial Development Authority) and others would hold the next meeting after analysing reports.
"Committee has called reports from CREDAI, NAREDCO, Banks, NOIDA and NBCC..dept of Financial Services, Dept of Corp Affairs, CEOs of GNOIDA & YEW and Rep of Home Buyers have been co-oped in the Committee. Next meeting after analysing reports is scheduled on Tues 10th July (sic)," Puri tweeted.
In another tweet, the Union minister had said, "The committee will reach out to the home buyers with a view to resolving their problems at the earliest."
Last year, the government’s construction arm had said it was open to completing Jaypee Infratech's pending projects as a project management consultant, if instructed by the government.
Homebuyers cannot approach the government’s construction arm directly. Either the government entities or financial institutions have to directly approach the NBCC to get the unfinished projects completed.
“Government entities such as Noida Authority, the nodal agency of the UP government, can get in touch with us directly. Buyers cannot approach us directly. Our role, as I envisage it in case of completing unfinished real estate projects, would be that of a project management consultant,” NBCC’s chairman and managing director AK Mittal had told Moneycontrol last year.
Experts had also said that this could be one way in which all stuck up real estate projects can get completed and buyers who have invested their life savings and waited for over eight years can get their homes. Banks too would be willing to put in money (last mile equity) if the government decides to step in through its construction arm to complete the projects as there is a trust deficit in the firstname.lastname@example.org