Delinking the registration of housing units from builders’ dues, as suggested by the Amitabh Kant committee for legacy stressed projects, can help address the issues of homebuyers, Uttar Pradesh Real Estate Regulatory Authority (UPRERA) Chairman Sanjay Bhoosreddy told Moneycontrol in an interview. He added that this has already been implemented in several housing boards across the state in the past.
He, however, said that in doing so the authorities may have to take a haircut, the financial implications of which will have to be worked out.
He added that during the course of the meetings with the Kant committee, UPRERA had given inputs on reviving stalled projects and addressing the issues of homebuyers, and some of the recommendations have been included in their report.
The Kant-led committee, set up by the union housing ministry to look into the matter of legacy stressed projects, has said that the registration of housing units should not be contingent on the recovery of builders’ dues.
Per the Noida and Greater Noida authorities, developers owe them close to Rs 39,000 crore in dues. Following this, the authorities have stopped the registry of housing units and even the issuance of occupancy certificates in projects with unpaid dues.
Bhoosreddy, who was appointed UPRERA Chairman on August 12, said that addressing the issues of allottees and strict compliance with RERA guidelines will be his main priority during his tenure.
A retired IAS officer of the 1989 batch, Bhoosreddy has served with the Uttar Pradesh Housing Board and has been the Additional Chief Secretary-Sugar Industry. He was also the Investment Commissioner of the UP government.
Former UPRERA Chairman Rajive Kumar, who was part of the committee, has recommended that the state government should also delink penalties against developers for unpaid dues, and permit registration of more than 45,000 housing units that are complete.
According to a survey commissioned by UPRERA, there are as many as 45,000 units where buyers have taken possession without registering their ownership, and 1,25,000 units where neither possession has been taken nor has the registry been done.
“The report (of the Kant panel) is under the consideration of the state government. The housing department and the industrial development department will also submit their assessments to the government on this. Since the amount is large, the state government will decide on it and send its recommendation to the cabinet for its nod,” he explained.
Bhoosereddy added that RERA is also one of the stakeholders in this, so the authorities will follow the government’s guidelines on stalled projects and builders’ dues.
The Kant panel, which was put in place in March this year by the Ministry of Housing and Urban Affairs (MoHUA), has made a seven-point recommendation, including mandatory registration of projects under RERA, execution of registrations or sub-lease deeds for all occupied units, occupancy of all substantially completed projects, and financing of all stalled projects by a government-backed fund.
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