Uttar Pradesh govt to allow co-promoters soon in bid to complete stuck projects
The UP government in a bid to get the large volume of stuck projects completed in Noida, Greater Noida and Yamuna Expressway will soon allow co-promoters in projects. In an exclusive interview to Magicbricks UP RERA regulator, Rajive Kumar said this is a fall-out of the 98-project audit that was taken of projects in the cities. Those that still have cash receivables from consumers or unsold units that can be sold or those that have unutilised land and so are Net Cash Positive can be taken through to completion with a co-developer.
The authority will soon have a core committee meeting to assess the audit reports that are now completed and ready for review. We propose a weekly meeting with builders and all stakeholders to find mutually agreeable solutions to complete the stuck projects. Magicbricks is currently running a campaign #completestuckprojects across the country in a bid to help lakhs of consumers.
The authority will take one month to cover the list and will shortly come up with a way forward with timelines. “This will have a multiplier effect,” says Kumar who believes that the regulator is trying to fulfil its role of development of the sector as well. In the cases where the developer has indulged in blatant cash diversion, notices have been issued and stern action would be taken.
In a bid to clear all the complaints at the earliest, the regulator is meeting consumers five days a week in Greater Noida and Lucknow RERA courts, with no vacations. In December for 3 days the RERA benches of Lucknow and Greater Noida will sit in the Greater Noida court, clearing pending cases. Kumar expects that consumers will start seeing reasonable traction by mid-December or January when a large number of cases will move to conclusion.
Reconciliation and finding ways to complete the projects are the first goal, he explains. Where a developer can’t complete the project, RWAs are also involved with a first right of refusal to the revival plan that is projected. But is a credible plan for financing and a good methodology of financial and physical execution is provided, the RERA can facilitate the new agency to complete the project. The agency will help locate co-developers in cash positive projects.
Responding to this suggestion, Naredco President Niranjan Hiranandani said the organisation is willing to come forward and help sort out the crisis in the twin cities. “All stakeholders have to come together and take haircuts in a bid to complete the project,” he said. He maintains that there is finance available in the form of Asset reconstruction and vulture funds, if necessary to fund the last mile and complete the project.
Rohit Modi, Secretary, Credai, said the organisation “is committed to getting members’ projects completed. We are working with RERA to find solutions. Those with negative cash flows have to be penalised and the cases have to go to court. Where funds have not been diverted and the projects are cash flow positive we can help. There has to be a bridge between RERA and the local authority to fix approval life cycles.”
With both credible developers willing to step in, and the state government allowing co-development of stuck projects, there is a good chance that 2019 may well be a better year for home buyers in Noida and Greater Noida.