After rounds of deliberation, negotiations with stake holders and persistent follow-up from Developer forums, Government of Uttar Pradesh has finally rolled out the relief package to the Real Estate Industry and Thousands of home buyers. After the cabinet of GoUP had accepted the recommendations of Amitabh Kant committee on Legacy Stalled Real Estate Project in Noida, Greater Noida and Yamuna Industrial Development Authorities, Infrastructure & Industrial Development Commissioner Mr. Manoj Kumar Singh has sent the relives being provided and the procedure to be followed by these Authorities.
Founder & CEO of Headway Consulting & Solutions Mr. Jatin K Goyal has taken a brief insight on this. Here are the key takeaways;
· All the Group Housing Projects are eligible to get the benefit of this package, even the Group Housings which are part of any commercia Scheme are also eligible.
· Projects which are before NCLT or any Court of law under Insolvency and Bankruptcy law, subject to withdrawal of the case.
· No Relives to be granted to the Projects comprising out of Sports Cities and Recreational Schemes of these Authorities.
Board of these Authorities shall take care of the execution of this package by taking necessary decisions. Below are the major relives being granted;
1. Zero Period:
i. Two years of Zero Period has been provided in view of Covid-19 from 01.04.2020 to 31.03.2022
ii. Zero Period from 14.08.2013 to 19.08.2015 for the projects within 10 Kms of Okhla Bird Sanctuary on case to case basis.
2. Inclusion of Co-Developer:
For facilitation of completing Group Housing Projects, Authorities shall recognize Co-Developer in its records. The responsibility of payment of due of Authorities shall be born jointly by the original developer/ allottee and Co-Developer.
3. Permission to Mortgage
Permission to mortgage shall be issued on payment of 25% of net dues, recalculated after getting the relives under this package. Conditional PTM’s shall also be issued for arranging this 25% payment, on the condition to pay this amount in escrow account.
4. Approvals & Time Extensions: On Payment of 25% of dues, applications for plan approvals, time extension, completion etc. shall be considered immediately.
5. Reschedulment of dues
After paying this 25% payment, rest payment shall be made within 3 years with simple interest.
6. Free of cost Time Extension for three years for completing the Project.
7. No Cancellation of Lease deeds
8. No Extra Cost to be charged by the developers from Home Buyers
9. Partial Surrender / Partial Cancellation
The relieves granted are really long awaited a welcome move from GoUP, however, over 70% Residential units are stuck in Sports Cities and Recreational Schemes of accros these Authorities. Since Sports Cities and Recreational schemes are kept out of this package, we shall have to wait and see the impact to the Home buyer and Real Estate Market.
