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Property market in India: Narendra Modi government adopts tough stance against delayed projects, set to take this step

The ministry of housing and urban affairs will create a central database of delayed real estate projects. It has sought the details of delayed projects from all the states for this purpose.

The ministry of housing and urban affairs will create a central database of delayed real estate projects. It has sought the details of delayed projects from all the states for this purpose. (Reuters)

The ministry of housing and urban affairs will create a central database of delayed real estate projects. It has sought the details of delayed projects from all the states for this purpose, a senior official at the ministry said. “In most of the states, the regulatory authorities have started working and builders have started registering projects with all requisite details. It will now be easier to get data,” the official said. Last month, the Bombay High Court had asked the housing and urban development ministry to provide details and the number of delayed projects. The Bombay HC has been holding daily hearings of cases filed by real estate developers challenging the Real Estate (Regulation and Development) Act and seeking to keep incomplete projects out of the central law. The court will pronounce judgement on the petition on Wednesday. Though the housing ministry had been working on a real estate regulation law for more than eight years, it did not have any official data about the number of delayed projects and houses. Earlier this year, pan-India home buyers’ group Fight for RERA had urged the government to start collecting data on all incomplete projects across India and track the number of home buyers in these projects. “The projects should be categorised as normal and high-risk and, accordingly, steps should be taken by your government in high-risk projects so as to safeguard the interest of home buyers in these projects,” it had written to PM Narendra Modi. According to data from real estate rating and research firm Liases Foras, about 29.23 lakh units of under-construction houses are delayed.

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