Rs 2,500 cr aid can revive most stalled projects in Noida, Gr Noida, help 50K homebuyers : Realtors

A Rs 2,500 crore fund support can help revive most of the stalled projects with positive networth in Noida and Greater Noida, helping around 50,000 homebuyers, the NCR unit of realtor's body CREDAI said here on Thursday. The figures came a day after the central government approved a Rs 25,000 crore fund to help complete over 1,600 stalled housing projects, including ones that have been declared NPAs or admitted for insolvency proceedings, across the country.

CREDAI officials and builders Manoj Gaur, Prashant Soloman and Rohit Raj Modi also re-iterated their association's demand for allowing any project in the National Company Law Tribunal (NCLT) only through Real Estate Regulatory Authority (RERA) and with the backing of two-thirds of homebuyers. "Around 100 projects linked with CREDAI in Noida and Greater Noida are 'stressed'. These 'stressed' are the projects that have not gone bad but banks are not giving loan for their completion while the builders are not able to clear dues of local authorities. These are old, ongoing projects," Gaur told reporters.

"On an average there are 250-300 units in each such project. There are a lot of smaller projects whose developers do not have multiple sources of funds … There are easily 50,000 to 60,000 buyers who will be helped by this announcement of the government and we welcome this move," he said. Asked about an estimated amount of fund that is required to revive all stalled projects in Noida and Greater Noida, Gaur said there is no data available immediately on that.

However, Rohit Modi said if a funding of Rs 2,500 crore is poured for stalled projects in Noida and Greater Noida, then most of the positive net worth projects will take off again. "If a project needs Rs 50 crore for completion it does not mean it would need the entire amount. If the developer gets even Rs 20 crore, it can restart work and a positive sentiment would go out. The developer becomes confident, his units would get sold and buyers will also pump in money," Modi told reporters.

CREDAI NCR said around 70 per cent of the cases in the NCLT are from real estate sector in which most of the homebuyers want a refund and demanded that individual buyers should not be allowed to initiate insolvency proceedings against a project. "There are several cases in which one, two or four homebuyers have got a project stalled. Insolvency proceedings should be backed by two-thirds homebuyers and should go through RERA, whose primary concern is completion of project and ensuring the interest of larger body of customers and stakeholders," the association added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)