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In a significant move aimed at providing relief to countless homebuyers, the Uttar Pradesh cabinet gave its nod on Tuesday to the adoption of recommendations outlined in the Amitabh Kant Committee report on real estate projects. The approved measures encompass immediate registry and sub-lease deed rights for homebuyers, along with a 'zero period' benefit for developers regarding penalties for delays during the COVID-19 period from April 1, 2020, to March 31, 2022.
The decision, driven by a proposal from the Industrial Development Department to address the plight of legacy stalled housing projects, was unveiled by UP cabinet minister Suresh Kumar Khanna in a press briefing in Lucknow. Khanna, who serves as the state's Minister for Finance and Parliamentary Affairs, highlighted the importance of prioritizing the interests of homebuyers. He emphasized the need for swift possession and registry for those who have purchased homes.
Khanna confirmed that the cabinet has given the green light to implement the recommendations of a central committee and that the buyers' interests were a primary consideration, ensuring that those who have acquired homes receive immediate possession and registry.
The cabinet's approval extends the 'zero period' relief to real estate projects, excluding commercial, sports, or entertainment ventures. According to estimates by the Indian Banks Association, approximately 4.12 lakh homes nationwide remain unfinished due to the financial challenges faced by developers. Of these, around 2.40 lakh are situated in the national capital region, including Noida and Greater Noida.
Khanna acknowledged the persistent demands from citizens' groups and homebuyer associations in Noida and Greater Noida for the implementation of the Amitabh Kant Committee report recommendations. He asserted that if these recommendations are executed, the interests of homebuyers will be safeguarded, ensuring the timely availability of fully constructed houses in stalled projects.
The second crucial point endorsed by the cabinet pertains to granting the 'zero period' benefit from April 1, 2020, to March 31, 2022, implying that no interest should be charged during this period for real estate projects.
In March, the Union Housing and Urban Affairs Ministry formed a 14-member committee, headed by former NITI Aayog CEO Amitabh Kant, to address issues related to stalled real estate projects. The committee's report, submitted to Union Housing and Urban Affairs Minister Hardeep Singh Puri on August 21, emphasized the urgent need for the registration and execution of subleases in favour of rightful homebuyers, irrespective of builders' pending dues. The committee anticipates this move will benefit around one lakh homebuyers who have fulfilled their obligations but are yet to receive their legitimate rights.
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