A High-Level Committee of the Uttar Pradesh government has come out with recommendations aimed at providing solution to the completion of homes in the stalled projects of Noida, Greater Noida and Yamuna Expressway. The Committee was constituted by the State government vide order dated 18th June, 2018 under the chairpersonship of Secretary, Ministry of Housing and Urban Affairs (MoHUA) in order to address the issues of home buyers and affected parties of Noida, Greater Noida and Yamuna Expressway. The mandate of the Committee was to identify the problems and to make clear recommendations to solve the issues raised by homebuyers. The committee held deliberations with all the stakeholders Home Buyers Association, Developers & their Association, Bankers, concerned administrative Authorities etc. before finalization its report.
It is being noticed that on various social media platforms the recommendations of the Report have not been clearly understood and it has been alleged that it favors the developers/builders.
In this regard, it is important to note that main problem of home buyers of Noida, Greater Noida and Yamuna Expressway is that of the ‘stalled projects’ and the only relief for home buyers is to ‘get these completed and give possession of their booked home’ as early as possible. Therefore, each recommendation has been made keeping the interest of home buyers only. The Committee has made a total of 10 recommendations.
Ø It is evident that the main reason of the stalled projects is the ‘lack of fund’ and ‘non-availability of last mile funding’, therefore the Committee’s first recommendation pertains to RBI for issuing guidelines to enable Banks to fund this gap. It will help home buyers to get their homes.
Ø Presently, nobody wants to put the money in stalled projects as there is no guarantee of the return on their investment. Second recommendation of the Committee pertains to Last-In First-Out (LIFO) model for execution of Stress Fund to ensure the confidence of investor to put its money in order to complete the stalled projects, as it will also help home buyers to get their homes.
Ø Third recommendation was related to introduction of Project Settlement Policy (PSP) by State Government of Uttar Pradesh with certain modifications. It is important to know that PSP was launched earlier by the Authorities but no developer availed the same. Now, the situation is more critical than before, therefore PSP for fixed 6 months’ period has been recommended, wherein the developer has to give a written undertaking to complete the projects within 3 years, otherwise the benefits of PSP shall be taken back and all the dues shall be recovered from developer by the concern Authority. This would ensure that the PSP helps in completion of the stalled projects and its benefits not misused by the developers. The provision to introduce co-developers to complete the stalled projects is to ensure early completion of the projects to help home buyers only.
Ø Fourth recommendation to avoid multiple sale of single property, the “Agreement to Sale” to be registered in the office of concern Sub-registrar with nominal registration fee will ultimately secure the interest of Home Buyers.
Ø Fifth recommendation is related to establishment of one Real Estate Regulatory Authority in Noida or Greater Noida, to readdress the issue of home-buyers of the Noida, Greater Noida, Ghaziabad and nearby area on a regular basis.
Ø Sixth recommendation is to permit the affected home buyers to get the title deed registered on stamp duty at the rate prevailing at the time of committed date of the completion of the project by the developer. It will give huge monetary benefits to each affected individual home buyer.
Ø Seventh recommendation relates to policy for taking over their unused land/FAR of stalled projects by the Authorities, wherein no third-party interest has been created, is to instil a sense of discipline among the developers and penalise the defaulters.
Ø Ninth recommendations pertain to preparation of a panel Lawyers of RERA to assist the homebuyers in pursuing their cases before RERA Authorities at reasonable fees.
Ø Tenth recommendation pertaining to survey by NBCC (India) Limited of other developer’s stalled projects in Noida and Greater Noida and take up few selected viable projects upon its independent audit/survey in order to complete the same. This would directly benefit the homebuyers in the selected stalled projects.
None of the recommendations puts any additional burden on the homebuyers, rather they will smoothen completion of the projects to deliver possession to home buyers at the earliest at the cost already conveyed to them by the developers/builders.