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  1. Panel suggests creation of stressed asset fund to deal with stuck housing projects

Panel suggests creation of stressed asset fund to deal with stuck housing projects

A holistic approach is needed to solve the problem of three lakh affected homebuyers suffering because of stalled projects where the builders are unable to navigate forward due to constraints, housing and urban affairs minister Hardeep Singh Puri has said.

Puri was speaking at the first regional workshop on Rera held in Pune. (IE)

A holistic approach is needed to solve the problem of three lakh affected homebuyers suffering because of stalled projects where the builders are unable to navigate forward due to constraints, housing and urban affairs minister Hardeep Singh Puri has said. He added that a high-powered committee, set up at the request of the Uttar Pradesh government, has suggested the creation of a stressed asset fund to deal with incomplete projects where builders don’t have the resources to finish the projects.

Puri was speaking at the first regional workshop on Rera held in Pune. Speaking at the event, the minister further said partial funding can be provided for these projects so that they can be completed. This would provide some relief to the hassled homebuyers who are dealing with the twin blow of having to pay rent and also have their money stuck as they are paying EMIs, he added. Stressed asset funds are a way to bridge the gap in the interim to navigate through the current mess and it could set a template, Puri said.

The minister further said there are many who are still trying to keep things outside the purview of Rera. “We are at the last stage of the struggle and the problem of homebuyers will be solved,” he assured. After UP, now Haryana also wants to set up a committee to find a way out. This problem is not limited to the NCR, but is happening across the country and will need a practical solution, Puri said.

The western region, he said, had got off to a good start in the implementation of Rera led by Maharashtra, and other states are putting institutional mechanisms in place to implement the Act. Puri said so far, a total of 31,475 real estate projects and 24,000 real estate agents have been registered under Rera across the country. At 17,567 projects, Maharashtra has the highest number of projects registered under Rera and 16,045 registered real estate agents.

“Maharashtra is one of the first states to implement the provision of Rera and establish the Real Estate Regulatory Authority and the first state to initiate the conciliation mechanism by way of alternative dispute resolution to redress the issue of aggrieved homebuyers,” he said. Maha Rera has received 4,000 complaints so far and has a 70% compliance record.

According to Puri, 28 states and Union Territories have notified the rules under Rera except Jammu & Kashmir; six North-Eastern states (because of land issues) and West Bengal. West Bengal, though, has submitted a draft of the proposed Bill regarding the establishment of their own real estate authority to the Central government, which the minister said, has been sent for legal vetting. Puri added that the government will not allow any dilution or tweaking of the Rera Act.

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