Naredco Urges Centre to Aid Stalled UP Housing Projects

New Delhi, Aug 26 (PTI) Realtors' body Naredco has urged the Centre to direct the Uttar Pradesh government to announce relief measures for the completion of stalled housing projects.

Naredco's Uttar Pradesh chapter President RK Arora has written a letter to Union Housing and Urban Affairs Minister Manohar Lal Khattar, requesting it 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.

"Allow 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 and also permit zero period wherever land was in dispute due to acquisition," Arora said.

Naredco has also requested the minister to direct IBBI to facilitate project-wise resolutions and interim funding for companies to complete ongoing construction. Insolvency proceedings should be used as a last resort, it added.

"Real estate projects in Noida, Greater Noida and Yamuna authority and Haryana regions seek your immediate intervention to complete these projects and clear the dues to the respective authorities and financial institutions at the earliest through Escrow Mechanism," Arora said in the letter to the minister.