Real estate developers delegation met FinMin Sitharaman, demanded 'stress fund'

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Real estate developers delegation met FinMin Sitharaman, demanded 'stress fund'

The delegation of real estate developers has put forward a demand for the creation of stress fund for the completion of stalled projects.

Real estate developers delegation met FinMin Sitharaman, demanded 'stress fund'

If the sources are to be believed, a long pending demands of homebuyers from the government – ‘stress fund’ for incomplete projects has knocked on the door of the Finance Ministry. Sources said a meeting was convened in this regard in the presence of Union Finance Minister, Nirmala Sitharaman in which ‘stress fund’ was also discussed among other issues.

Sources said a delegation of real estate developers, including Delhi-NCR has visited the finance minister, during the meeting they laid a demand of ‘stress fund’ from the government to revive the real estate firms and to provide homes to the homebuyers in Noida and Greater Noida.

Sources claimed liquidation of insolvent real estate firms, is another major issue which they raised before the union finance minister and couple of state ministers recently. “The delegation of real estate developers has put forward a demand for creation of stress fund for completion of stalled projects,” a source privy with the matter said. 

The issue of liquidation has been a debating issue in many projects in Noida and Greater Noida where the developers either run away or the companies declare insolvency. For instance, homebuyers in Jaypee Infratech projects waiting for their flats nearly for last one decade have pleaded before the Supreme Court, seeking its direction not to impose liquidation against Jaypee Infratech projects. Flatbuyers had raised their fear before the apex court that once the if liquidation is declared, one other developer will come to take over the projects and the entire process to revive the stalled projects will be stopped which will end the hope of 40,000 flatbuyers who have invested their money.

Responding on hombuyers plea, the top court has directed the NCLAT to bring out another way to resolve the Jaypee Infratech projects, instead declaring liquidation against the real estate firm.

Flatbuyers with the help of different associations in Noida and Greater Noida have been demanding ‘stress fund’ from the government, and they had huge expectation from the second round of BJP government. However, they had to receive disappointment on the day union budget was presented in the Parliament. There was no mention of ‘stress fund’ in the budget, however, homebuyers and the real estate association (CREDAI) have been raising this issue in different occasions.