SNG & Partners Advised UP’s NAREDCO; Leads To Delhi High Court Notice To Housing Ministry
The autonomous body’s petition highlighted the issue of stalled real estate projects affecting thousands of homebuyers;
SNG & Partners Advised UP’s NAREDCO; Leads To Delhi High Court Notice To Housing Ministry
The autonomous body’s petition highlighted the issue of stalled real estate projects affecting thousands of homebuyers
The Delhi High Court has sent a notice to the Ministry of Housing and Urban Affairs, Government of India, directing it to file a status report on the Amitabh Kanth Committee recommendations.
The missive by the bench of Justice Sachin Datta came after the National Real Estate Development Council (NAREDCO), Uttar Pradesh, filed a writ petition before the court seeking implementation of the expert committee’s suggestions.
The committee was constituted on 31 March 2023 by the Housing Ministry to deliberate on the issues of legacy stalled projects. It proposed options to complete and handover the pending projects to homebuyers.
The committee consulted the stakeholders, including the state governments, regulatory authorities and financial institutions and submitted its report in July 2023.
The signatories of the report included representation from the Ministry of Corporate Affairs, Ministry of Housing & Urban Affairs, Ministry of Finance, Insolvency & Bankruptcy Board of India and National Housing Bank.
The report recommended:
a) Mandatory registration of projects with the Real Estate Regulatory Authority (RERA).
b) Execution of registration/sub lease deeds for all occupied units.
c) Possession of all substantially completed projects.
d) Proposal for state government's rehabilitation package for a promoter-led resolution, including introduction of ‘zero period.
e) Framework for RERA and administrator led revival of projects.
f) Financing the stalled projects.
g) Implementing the Insolvency and Bankruptcy Code (IBC) to resolve projects as a last resort.
The committee stated, “The measures will provide relief to the homebuyers, and it will be a win-win situation for the lenders and the land-owning authorities. It will be a major impetus to India’s growth and progress through revival of construction activities and completion of stalled projects.”
NAREDCO’s petition highlighted that the issue of stalled real estate projects had deepened into an economic and social crisis. It affected thousands of homebuyers, developers and financial institutions. Therefore, the authorities must act to resolve the issue.
NAREDCO was established as an autonomous self-regulatory body in 1998 under the aegis of the Ministry of Housing & Urban Affairs.
The petitioner functions as the development and promotion council for housing and real estate sector in UP.
The SNG & Partners team was led by Saurabh Kirpal, Senior Advocate. He was guided by a team led by Ashish Kumar, Partner and Advocates, Lokesh Malik, Shreesh Pathak and Manya Sharma.
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