Real Estate Sector: Cabinet nod to Amitabh Kant panel’s report, over 2.4 lakh home buyers in NCR to benefit

He, however, added that the recommendations would not apply to commercial, sports, or entertainment projects.

In its report, submitted in July this year, the Amitabh Kant committee had suggested the introduction of a “Zero Period” in which interest and penalties would be suspended from April 1, 2020 and March 31, 2022 due to the Covid-19 pandemic. “The state governments could examine and provide further zero periods based on the local conditions/circumstances,” the report stated.

The UP government’s decision would benefit a large number of home buyers in Noida and the Greater Noida region of the state.

As per the Kant panel report, the Indian Banks’ Association (IBA) estimated that 4.12 lakh stresseddwelling units involving Rs 4.08 lakh crores have been impacted by stalled real estate projects of which about 2.40 lakh stressed dwelling units were situated in the National Capital Region (NCR). “If 75% of these stressed units are resolved, it will add about three lakh units to the housing sector. The resolution of these stressed units will assist the middle and lower middle class in getting houses for which they have already paid a substantial amount. In addition, it will provide a major impetus to economic activity and growth,” the report stated.

The committee, led by the former CEO of NITI Aayog and G20 Sherpa, observed that the primary reason for stress in real estate projects was the lack of financial viability. Accordingly, the committee recommended a slew of measures aimed towards improving the financial viability of stalled real estate projects, to enable their completion.

Meanwhile, real estate developers lauded the government’s decision, saying the move will be helpful for both builders and home buyers.

“This move not only facilitates home registrations for flat owners but also sends a positive signal to the real estate sector. This decision will create a conducive environment for the advancement of the NCR real estate landscape. We are hopeful of many such real estate sector-friendly decisions by the government,” said National Real Estate Development Council (NAREDCO) president G Hari Babu.

Gaurs Group CMD Manoj Gaur said: “With the exemption of interest during the ‘zero period’, many flat owners can now proceed with the registration of their homes without the added financial burden.”

“Recognising and addressing the concerns of the developer community, the government has lleviated financial pressures and conveyed a strong and optimistic message to the real estate industry,” he added.

Amit Modi, director, County Group, said all stakeholders, including financial institutions, authorities, state exchequers, and developers, stand to gain from this.

“Home buyers benefit from home deliveries, including getting their homes registered. Authorities receive dues, and state exchequers benefit from increased revenues from the registration of properties… The move will also help many developers turn net positive,” Modi said.

—With PTI Inputs