Realty developers’ apex body Confederation of Real Estate Developers’ Association of India (CREDAI) has submitted a proposal to the Uttar Pradesh government on the co-developer policy for defaulter builders. “CREDAI has stepped in to resolve the woes of homebuyers who are suffering delays in delivery of flats and are now faced with losing out to secured creditors under insolvency procedure… The main thrust of these options is to bring in credible and resourceful developers into the delayed projects, as investors or co-developers who would complete the projects and use an escrow mechanism to ensure that cash flows from unsold portion of the project inventories are used up towards balance cost of construction,” a release from the developers’ body said quoting their chairman Getamber Anand.
There are as many as 25,000 home buyers of Jaypee Infratech and another 35,000 buyers of Amrapali, along with many more in other projects in Noida, whose hard-earned money is at stake for over 4-7 years. The meetings come at a time when the National Company Law Tribunal has admitted insolvency pleas from banks against Jaypee Infratech and Amrapali Group’s firms which have projects in Noida.
“The policy is yet to be approved by the state government. We have just submitted the proposal…This policy is primarily made to guard the co-developers. It will be the responsibility of co-developer to bring in money and execute and complete the work,” RK Arora, chairman of Supertech said.
A high-level meeting, chaired by chief minister Yogi Adityanath in Lucknow on Tuesday, was attended by the chief executive officers of Noida, Greater Noida and Yamuna Expressway authorities, the chief secretary of Uttar Pradesh, district magistrate and the group of ministers comprising industries minister Satish Mahana, urban housing minister Suresh Khanna and state minister (independent charge) of cane development and sugar mills Suresh Rana. Representatives of real estate developers such as Unitech, Jaypee Infratech, Amrapali, Supertech and members of CREDAI were also present in the meeting.
The CM has also asked developers to ensure that 50,000 apartments get delivered in the next three months, directing Greater Noida and Yamuna Expressway authorities to facilitate the delivery process.
“We have applied for completion certificate of 7,000 flats which are complete and about 3,000 flats are in the advanced stages of completion. In total about 44 projects have applied for completion certificate,” Arora said.
The state government has also formed a committee of experts to conduct audits of builders and their incomplete projects.