{"id":257063,"date":"2023-08-23T21:02:09","date_gmt":"2023-08-23T15:32:09","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=257063"},"modified":"2023-08-23T21:02:09","modified_gmt":"2023-08-23T15:32:09","slug":"developers-financiers-will-have-to-take-haircuts-committee-on-stalled-housing-projects-suggests","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/developers-financiers-will-have-to-take-haircuts-committee-on-stalled-housing-projects-suggests\/","title":{"rendered":"Developers, financiers will have to take \u2018haircuts\u2019: Committee on stalled housing projects suggests"},"content":{"rendered":"\n

Source: <\/b>The post is based on the article<\/span> \u201cDevelopers, financiers will have to take \u2018haircuts\u2019: Committee on stalled housing projects suggests\u201d <\/b>\u00a0published in <\/span>Indian Express on 22nd August 2023.<\/b><\/p>\n

What is the News?<\/b><\/h2>\n

A committee formed by the Union Housing and Urban Affairs Ministry to suggest ways to revive stalled real estate projects has submitted its report.<\/span><\/p>\n

About the committee to examine stalled <\/b>Real Estate projects:<\/b><\/h2>\n

The committee was<\/span> chaired by former NITI Aayog CEO and India\u2019s G20 Sherpa, Amitabh Kant.<\/span><\/p>\n

Mandate: <\/b>To examine stalled real estate projects and recommend ways to complete them.<\/span><\/p>\n

What is the status of housing projects?<\/b><\/h2>\n

The committee cited the Indian Banks\u2019 Association (IBA) as estimating that 4.12 lakh dwelling units of Rs.4.08 lakh crore were \u201cstressed\u201d\u00a0and about 2.40 lakh (44%) of these were in the National Capital Region.<\/p>\n

Another 21% of the units were in the Mumbai Metropolitan Region.<\/p>\n

The committee concluded that the main reason for the stress in these projects was the \u201clack of financial viability<\/strong>\u201d, which had led to cost overruns and time delays.<\/p>\n

What are the recommendations given by the committee?<\/b><\/h2>\n

In order to make the projects viable, encourage stakeholders \u2014 that is the developers, financiers, land authorities etc\u00a0 to take a \u201c<\/span>haircut\u201d<\/span><\/a> or accept less than what is due to them.<\/span><\/p>\n

Delink the grant of registration or sub-lease by the land authorities to the homebuyers from the recovery of dues from developers. About 1 lakh homebuyers would benefit from this.<\/span><\/p>\n

Expedite the issuance of no-objection and completion certificates for projects that are substantially complete but face administrative obstacles.<\/span><\/p>\n

Recommend state governments establish a rehabilitation package to revive stalled projects with a commitment from developers to complete them within three years.<\/span><\/p>\n

Reserve judicial interventions like using the Insolvency and Bankruptcy Code as a last resort.<\/span><\/p>\n

Suggest a “Zero Period” for two years, starting from the onset of the COVID-19 pandemic in 2020, where interest and penalties on developers are waived.<\/span><\/p>\n

Developers should be allowed to get a \u201cco-developer\u201d on board to complete the work.<\/span><\/p>\n

Propose a “partial surrender policy” where developers can return unused land to authorities in exchange for a waiver of dues on that land.<\/span><\/p>\n

Who will implement these recommendations?<\/b><\/h2>\n

Land is a state subject. Hence, most of the recommendations of the committee fall within the purview of the respective state governments.<\/span><\/p>\n

The Ministry of Housing and Urban Affairs will send the recommendations of the committee to all states, who will decide on if and what they want to implement.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cDevelopers, financiers will have to take \u2018haircuts\u2019: Committee on stalled housing projects suggests\u201d \u00a0published in Indian Express on 22nd August 2023. What is the News? A committee formed by the Union Housing and Urban Affairs Ministry to suggest ways to revive stalled real estate projects has submitted… Continue reading Developers, financiers will have to take \u2018haircuts\u2019: Committee on stalled housing projects suggests<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[10500],"class_list":["post-257063","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":2,"cached_at":"","cached_date":1699541444},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/257063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=257063"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/257063\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=257063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=257063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=257063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}