Home buyers body wants PSU to complete stuck projects

A home buyers association has written a letter to the Prime Minister demanding creation of a task force to identify stuck housing projects and nominate a PSU to complete these homes through creation of a stress fund.

The Forum for People's Collective Efforts (FPCE) said it has written to Prime Minister Narendra Modi in view of recent order by the Supreme Court in Amrapali case that the Centre and state governments should take steps to help all distressed home buyers.

"Now, as head of the government and also being most popular leader who has come back with huge majority, it is incumbent upon you to rise up to the expectations of not only the apex court but also to the millions of stuck homebuyers by taking effective steps to resolve the present issue," FPCE President Abhay Upadhyay said in the letter to Modi.

Stating that around 5 lakh home buyers are stuck, the association suggested that all projects that are delayed by more than one year should be identified within one month.

A task force under the Ministry of Housing and Urban Affairs should be formed with representations from home buyers, state governments, financial institutions and industry experts (other than builders) to ensure deliveries of delayed projects, starting with those nearing completion.

A Public-Sector Enterprise should be assigned the job to complete such identified projects in supervision of the said task force. "The task force should estimate the seed capital needed for completion of all such delayed projects for which a separate stress fund may be created and its utilization should be strictly monitored by the said task force," Upadhyay said.

Promoters of projects to be completed from this stress fund' should be stripped of all their assets, including his personal, to recover the money, the association said.

Alleging diversion of funds meant for projects, Upadhyay said forensic audit should be ordered for all such projects which are delayed by more than three years.

"This is a large scale organized cheating committed by promoters of real estate projects with all other constituents being partner in their crime," FPCE alleged and sought massive cleaning up exercise to eliminate bad elements.

A clear message need to be sent to real estate industry that the government will have zero tolerance policy towards any kind of malpractice or even delay in execution, it said.

"Needless to say, this is very serious matter and cleaning of mess of such proportion involving high and mighty builders cannot be undertaken unless you are directly involved and the entire exercise is carried under your direct supervision," FPCE said in the letter to the PM.

The real estate sector could contribute to its potential in GDP growth and generating jobs, if these measures are taken to eliminate fly-by-night builders, said Upadhyay who is also member of the Central Advisory Council, RERA, under the housing ministry.

The realty law RERA has failed in protecting home buyers' right because of poor implementation of the central law by the state governments, it said.