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The government of India has taken steps to identify housing projects that are currently stuck across the country, with the aim of assisting distressed homebuyers and ensuring the timely completion of these projects. The Ministry of Housing & Urban Affairs (MoHUA) has directed the chief secretaries of all states and Union Territories to gather information on stalled projects within their jurisdictions and submit the same for review.
To address this issue comprehensively, the ministry formed a 14-member committee in April, headed by Amitabh Kant, the former CEO of NITI Aayog and India's G-20 sherpa. The committee's mandate is to examine stalled real estate projects holistically and propose measures to facilitate their completion and delivery to homebuyers.
Union Minister of Housing and Urban Affairs, Hardeep Singh Puri, expressed the urgency of the committee's work in May, urging them to make recommendations promptly. Puri emphasized the importance of all stakeholders fulfilling their responsibilities promptly to expedite the completion of these projects and hand over homes to the buyers who have been patiently waiting.
Following the ministry's directive, state governments have reached out to homebuyers' associations, requesting additional details to supplement the information already available to the authorities. This exercise aims to compile comprehensive and up-to-date data on stalled projects nationwide. Having clear and real-time data will enable the formulation of effective action plans and strategies to provide relief to distressed homebuyers by ensuring the delivery of their apartments.
Abhay Upadhyay, President of the Forum For People's Collective Efforts (FPCE), highlighted the significance of this initiative and called on all state governments to make sincere efforts in identifying and locating every stalled project to provide support to all affected homebuyers. FPCE had previously recommended compiling such data during a meeting with the committee overseeing stalled projects.
The government has been actively working to devise strategies to resolve numerous housing projects that were launched before the enactment of the Real Estate (Regulation & Development) Act, 2016 (RERA). In 2019, the government established the Special Window for Affordable and Mid-Income Housing Fund (SWAMIH) Investment Fund, an alternate investment fund worth Rs 25,000 crore, to provide last-mile funding for these stalled projects.
Among the key investors in SWAMIH are the State Bank of India, the Life Insurance Corporation of India (LIC), HDFC (a prominent mortgage lender), and major nationalized banks. The fund plays a crucial role in infusing liquidity into stressed projects, thereby helping homebuyers across the country receive the apartments they have been waiting for.
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