Homebuyers’ Lobby Writes To PM Seeking Action On Delayed Projects
An Amrapali Group project in Noida, Uttar Pradesh. (Photographer: Anindito Mukherjee/Bloomberg)

Homebuyers’ Lobby Writes To PM Seeking Action On Delayed Projects

Listen to Article

A lobby representing homebuyers has asked Prime Minister Narendra Modi seeking forensic audit of all projects delayed for more than three years and steps to ensure flat-owners don’t have to suffer like those who bought apartments in projects of the Amrapali group.

Citing the Supreme Court’s recent judgment on Amrapali case, Forum For People’s Collective Efforts, wrote in a letter to the prime minister to address issues related to more than five lakh delayed homes and implementation of Real Estate (Regulation and Development) Act, 2016 (RERA) across the country. The letter, released to the media by the forum, has been marked to chief ministers of all states.

The letter, signed by Abhay Upadhyay, president of the forum and a member of the Central Advisory Council, RERA, suggests:

  • Creation of a separate cell within the housing ministry to deal with issues related to delayed projects across India with all concerned stakeholders including states, developers, authorities, banks, and homebuyers.
  • Identifying real estate projects delayed for more than a year across India within a month
  • Creation of a task force under the housing ministry, comprising representatives of Homebuyers, the ministry, states, financial institutions, independent persons of repute and industry experts, to identify projects near completion. The task force should estimate seed capital needed to finish delayed projects.
  • Creation of a separate stress fund to complete stuck projects.
  • Ordering forensic audit for all projects which are delayed for more than three years.

The letter also said that despite RERA, most ongoing projects have not been completed and the new law has failed to curb delays and the authority is granting extensions. “This surely points to the facts that something is amiss in its implementation and its effectiveness,” the letter said. It also highlighted how several states have either diluted the rules or delayed notifying rules.

The forum suggested “formulating appropriate guidelines” by states in consultation with the housing ministry, states regulators to address the issue of non-execution of orders RERA passed.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.