Naredco Seeks Centre's Help to Revive Stalled Housing Projects in UP
Naredco's UP chapter seeks Centre's intervention to complete stalled housing projects, requesting relief measures including land dues rescheduling and project completion extensions.
NaredcoUp Housing ProjectsReal Estate SectorLiquidity CrisisStalled ProjectsReal Estate MumbaiAug 26, 2024
Naredco's Uttar Pradesh chapter President RK Arora has written a letter to Union Housing and Urban Affairs Minister Manohar Lal Khattar, requesting him to direct the UP Chief Secretary to provide various relief measures.
The association has sought rescheduling of the land dues over a period of 3 to 5 years, after deducting the zero period entitlement without the condition of depositing upfront 25 per cent of the land dues, considering the severe liquidity crisis in the entire real estate sector.
Zero period means that there will be a waiver of interest and penalties on dues owed by developers to the government. Arora suggested that the authority could collect the land dues through an escrow account from receipts against sold receivables and new bookings.
The association also sought immediate registration/execution of sub-leases of residential towers, having occupancy certificates, in favour of the homebuyers. Naredco seeks an extension of time of 3 to 5 years for the completion of projects without any charges.
Frequently Asked Questions
What is Naredco seeking from the Centre?
Naredco is seeking relief measures for the completion of stalled housing projects in UP, including rescheduling of land dues and project completion extensions.
What is the zero period entitlement?
Zero period means that there will be a waiver of interest and penalties on dues owed by developers to the government.
What is the escrow mechanism suggested by Naredco?
Naredco has suggested that the authority could collect the land dues through an escrow account from receipts against sold receivables and new bookings.
What is the COVID Zero period and NGT Zero Period sought by Naredco?
Naredco is seeking a COVID Zero period of two years (from April 1, 2020, to March 31, 2022) and an NGT Zero Period of two years (from August 14, 2013, to August 19, 2015) for projects where construction was stopped.
What is the role of IBBI in the real estate sector?
IBBI is a regulatory body that oversees the insolvency and bankruptcy proceedings in India, and Naredco has requested the minister to direct IBBI to facilitate project-wise resolutions and interim funding for companies to complete ongoing construction.
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