Will Rs 10,00 Cr Stress Fund Help Home Buyers In Delhi NCR?
New Delhi: The announcement by the government to set up a Rs10,000 crore fund to provide last mile funding to stuck housing projects may come as a significant help to many stalled projects but experts points out that it may not be solve the problem much in Delhi NCR.
The fund is mandated to help monetarily to those housing projects that have neither been declared Non Performing Assets (NPAs) nor the developer of the projects has been taken to the National Company Law Tribunal (NCLT) for insolvency proceedings. The projects have to be at least 60 percent compete and have to be networth positive to get financial help from the fund.
Delhi NCR has had its own problems in the real estate field experts point out that most projects in the region are either NPAs today or insolvency proceedings are been initiated against them(builders). There are very few projects in Delhi NCR which are stuck and have not been declared NPAs or the builders have been taken to NCLT which means there will be liited scope for help by this new fund.
“In many cases in Delhi NCR, the builders have vanished and there is no trace of them and their projects are languishing for years. In some cases, the builders have fled to countries like USA and there is no one to run their companies so who will come forward and ask for financial help from this fund,” said a property expert who did not want himself to be identified.
Delhi NCR has the largest chuck of stalled projects with about housing units at 1.18 lakh spread over 67 projects, with an overall value of Rs 82,200 crore, according to real estate consultancy ANAROCK.
“This announcement (of setting up of Rs 10,000 crore fund) will not solve the problem of delayed/ stalled projects and affected home seekers in locations like the NCR,” said Niranjan Hiranandani, President NAREDCO. He said that most of the stuck projects in Delhi NCR are either under NCLT or have been declared NPA.
He also hoped that the corpus of the fund will be enhanced so as to bring more relief to the sector.