HUA moots 'stress funds' to complete stalled housing projects in Noida, Greater Noida

In a move that is likely to bring relief to home buyers in Noida and Greater Noida, the Ministry of Housing and Urban Affairs (HUA) has urged the Ministry of Finance to create "Stress Funds" to complete stalled housing projects in these areas.

An official said Housing and Urban Affairs Secretary Durga Shanker Mishra has written to the Department of Financial Services on the issue.

The idea was mooted by an empowered committee set up by the Uttar Pradesh government, under the chairmanship of Mishra, to resolve the issues of home buyers in Noida and Greater Noida.

As per rough estimates, there are 2.5 lakh affected housing units in Noida, Greater Noida and Yamuna Express areas.

"Through stress funds, builders will be able to complete the stalled housing projects. A letter has also been written to the Department of Financial Services (DFS) to take a decision on this issue," the official said.

Mishra said the report submitted to the Uttar Pradesh government on stalled projects is aimed at protecting and benefiting home buyers.

The empowered committee has also proposed a number of recommendations, including new Reserve Bank of India (RBI) guidelines which enable banks to bridge the fund gap and complete the stalled projects.

The ministry has also recommended the establishment of a Real Estate Regulatory Authority (RERA) in Noida or Greater Noida to readdress the issue of home-buyers of Noida, Greater Noida, Ghaziabad and nearby area, on a regular basis.

"Other recommendation is to permit the affected home buyers to get the title deed registered on stamp duty at the rate prevailing at the time of committed date of the completion of the project by the developer.

"It will give huge monetary benefits to affected home buyers," the official added.