Relief for UP builders, home buyers; no penal interest if litigation stalls projects

By: |
Lucknow | Published: December 3, 2019 4:53:05 PM

The decision to allow a “zero period” benefit to builders was taken at a meeting here of the state cabinet chaired by Chief Minister Yogi Adityanath.

UP builders, home buyers, litigation stalls projects, UP stall projects, UP projects ligitationThe minister said the decision was taken to protect the interest of home buyers and based on the recommendations of various committees and the UP Real Estate Regulatory Authority (RERA).

The Uttar Pradesh government on Tuesday decided to excuse builders from penal interest and other dues for the period their project is stalled due to litigation, if they pass on this benefit to the home buyers. The decision to allow a “zero period” benefit to builders was taken at a meeting here of the state cabinet chaired by Chief Minister Yogi Adityanath. The benefit will apply to builders who are set to provide homes to buyers by Jun 2021, Industrial Development Minister Satish Mahana told reporters. The state government expected one lakh new homes to be constructed by that time.

The minister said the decision was taken to protect the interest of home buyers and based on the recommendations of various committees and the UP Real Estate Regulatory Authority (RERA). The builders will be exempted from shelling out the penal interest and other dues if the housing project is stalled due to litigation, National Green Tribunal directions or a delayed deed execution. The zero period policy will also apply if a builder cannot start the project due to the absence of an approach road or the local authority’s failure to acquire land in time, he said.

The state government has also decided to begin probes against officials who are responsible for the delay in the handover of land to the builders, he said. The minister alleged that during the term of the previous Samajwadi Party government there was a race among builders and officials to begin housing projects, particularly in the National Capital Region. This led to a number of projects being stalled, he claimed.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Jungle Ventures invests in BookMyShow’s Southeast Asia business
2LIC’s millennial connect: How insurance giant is making policies alluring to youth
3HDFC Bank sees signs of revival in rural areas amid sputtering economy