Builders Can't Get 3 yrs to Finish Stalled Projects: FPCE.

The Federation of Indian Chambers of Commerce and Industry (FICCI) has proposed that real estate developers should only receive concessions for legacy stalled housing projects, and that defaulting builders should not be granted a blanket three-year extension to complete such projects.

Forum For People's Collective Efforts (FPCE) President Abhay Upadhyay has written a letter to Union Housing and Urban Affairs Minister Hardeep Singh Puri , expressing concerns on some of the recommendations made by Amitabh Kant-led committee that was constituted to examine the issues related to legacy stalled projects.

Forum For People's Collective Efforts (FPCE) President Abhay Upadhyay has written a letter to Union Housing and Urban Affairs Minister Hardeep Singh Puri , expressing concerns on some of the recommendations made by Amitabh Kant-led committee that was constituted to examine the issues related to legacy stalled projects.

According to FPCE, any extension granted to projects should be on a case-by-case basis and based on the time required to complete the projects under normal circumstances. A blanket extension of three years should not be given.

Upadhyay has suggested that builders whose projects have been stalled or delayed for more than two years should be blacklisted and prohibited from launching new projects in the future.

The association has expressed concerns about the committee's recommendation for a blanket extension of projects for three years. They argue that this extension does not take into account the time needed to complete projects on a case-by-case basis, which in many cases may be much less than three years. Additionally, the proposed extension lacks a compensatory provision for homebuyers who have suffered due to project delays.

Upadhyay has expressed concern that providing a three-year extension to builders without compensating homebuyers who have already suffered prolonged project delays could be detrimental. This could cause significant financial and mental distress to homebuyers, who have already been through a great deal.

This not only raises concerns about fairness of the revival package as recommended by the committee but also reflects an insensitive and unjust approach to homebuyers) hardships, he added. He said the report has some very good recommendations to facilitate possession of dream homes to homebuyers.

According to the association, the committee's findings indicate that there are still projects not registered under Real Estate (Development and Regulation) Act, popularly known as RERA, as required.

Upadhyay has expressed serious concerns about the effectiveness, integrity, and commitment of RERA authorities to enforce the regulations set forth by RERA.

FPCE has raised concerns about the project selection criteria recommended by the committee. The criteria includes projects that were started after the enactment of RERA in 2016, which seems to go beyond the scope of addressing only legacy stalled projects. Upadhyay has pointed out that this recommendation does not limit itself to legacy stalled projects, as it includes projects that were started after the enactment of RERA.

The fact that projects initiated after the implementation of RERA are experiencing delays and issues raises concerns about the effectiveness of RERA in preventing project delays and ensuring timely completion. Timely completion was one of the prime objectives of RERA.

Further, FPCE has recommend for establishment of a 'RERA Monitoring Committee (RMC)' primarily composed of homebuyers, distinguished independent individuals, and reputable non-profit organisations.

RMC's primary role would be to scrutinise the deviations, operational practices, and overall functionality and intent of the RERA authorities, ensuring they are aligned with the true spirit of RERA implementation.

By LNN (Liyaans News Network)