Investors Clinic ties up with NCR realty firms to offer fresh units to customers of stalled projects

The NCR market is worst hit because of non-delivery of projects by developers like Unitech, Jaypee group and Amrapali. Noida-based Investors Clinic said in a statement that ready-to-move-in or near-completion properties will be offered in projects of four builders -- Supertech, Migsun, Bhutani and Home & Soul -- to customers under 'Property Swap' scheme.

Property brokerage firm Investors Clinic on Friday said it has tied up with four NCR-based realty firms to offer fresh housing and commercial units to distressed customers who are stuck in stalled real estate projects. The amount invested by customers in the stalled projects will be accounted for and adjusted in the purchase price of new properties, it said.

The existing home loans, if any, in the stuck properties will be closed and a fresh loan can be availed while purchasing new units. Around 5 lakh customers are estimated to be stuck in about 1,500 stalled housing projects across the country. The NCR market is worst hit because of non-delivery of projects by developers like Unitech, Jaypee group and Amrapali.

Noida-based Investors Clinic said in a statement that ready-to-move-in or near-completion properties will be offered in projects of four builders -- Supertech, Migsun, Bhutani and Home & Soul -- to customers under 'Property Swap' scheme. More developers may join the scheme. When contacted, Supertech MD Mohit Arora, Bhutani group MD Ashish Bhutani and Migsun group MD Yash Miglani confirmed that they are participating in this new scheme, which aims to help consumers stuck in undelivered real estate projects and create new demand.

"We can feel the hardships faced by real estate investors. To help them realise the potential of their existing investments which are at a dead end right now, we are offering this model," said Sunny Katyal, co-founder, Investors Clinic. He hoped to complete 10,000 transactions under this property swap scheme over the next six months.

Supertech MD Mohit Arora said, "One of the major reason for downturn in the real estate sector is lack of trust between customers and developers. To bridge this trust deficit, we have introduced this new offer". He said the company will take over the properties booked by the stuck customers and offer them completed units.

"We will acknowledge the payment made by customers toward purchase of their units in the stalled projects and adjust in our total price," Arora said. He said the scheme would benefit all stakeholders -- customers, banks and developers, both old and new.

All the four builders and Investors Clinics have reduced their profit margins to make this scheme feasible. "We will offer completed or near-completion units to customers who are stuck in stalled projects. Whatever amount a customer has paid in existing unit will be adjusted in the price of new property which we will offer.

"We will take the ownership of existing stuck units. The stalled projects of builders like Amrapali will eventually get completed. It may take 5 or 10 years. So, it is our risk," Miglani said. Bhutani said this scheme is like a vaccine that will provide cure to all the problems faced by the real estate industry and it will boost market sentiments.

Home & Soul, which is a real estate development firm of the Investors Clinic group, will also be part. Investors Clinic said it has formed a team of 100 senior executives to make the process of 'Shift in Booking' seamless from one developer to another.

In November last year, the central government announced a Rs 25,000-crore fund to help complete over 1,500 stalled housing projects, including even those that have been declared NPAs (non-performing assets) or admitted for insolvency proceedings. The move is likely to help 4.58 lakh housing units across the country. Only RERA-registered projects with positive net worth will be provided funds.