Lok Sabha Question No. 4653 (UNSTARRED), answered on 2020-03-23
Subject: Stalled Housing Projects
Ministry: FINANCE
Asked by: K. Shanmuga Sundaram, Margani Bharat

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 4653

TO BE ANSWERED ON March 23, 2020 / Chaitra 3, 1942 (Saka)

## 'STALLED HOUSING PROJECTS'

## 4653: SHRI SHANMUGA SUNDARAM K: SHRI MARGANI BHARAT:

Will the Minister of FINANCE be pleased to state:

- a) whether  the  Government  has  created  or  is  having  any  proposal  to  create  a  separate  fund  for housing/ revival of housing projects held up in the country and if so, the details thereof along with the estimate of the corpus fund and the method of disbursing funds to the housing projects;
- b) the details of housing projects languishing in various cities for more than five years, State and citywise  along  with  the  estimated  projects  that  require  funding  and  the  number  of  households  to avail these benefits;
- c) the  details  of  eligibility  criteria  prescribed  for  the  projects  to  become  eligible  to  get  assistance from this fund along with the manner in which the Ministry arrives whether a particular project is financially viable;
- d) whether it is true that the Government has decided to take over Unitech and develop on its own and hand over them to flat owners;
- e) if  so, whether there are any plans to take over stalled projects in Andhra Pradesh and if so, the details thereof and if not, the reasons therefor; and
- f) the  details  of  protection  for  the  home  buyers  and  their  projects  which  are  under  PMLA attachment?

## ANSWER MINISTER OF STATE (FINANCE) (SHRI ANURAG SINGH THAKUR)

(a) to (b): As per decision dated 6 th November, 2019 of the Union Cabinet, a Special Window to provide last  mile  funding  to  stressed  affordable  and  middle-Income  Housing  projects  has  been  created      The Special  Window  comprises  of  professionally  managed  Alternative  Investment  Funds  (AIFs)  for  which Government  of  India  will  be  the  'sponsor'  and  one  of  the  'contributor's'.      The  AIFs  will  receive contribution from multiple stakeholders which besides Government of India, include financial institutions, sovereign wealth funds, public and private banks, global & domestic pension funds, provident funds and other  institutional  investors.        SBICAP  Ventures  Limited  is  the  Investment  Manager  for  the  first Alternative  Investment  Fund  set  up  under  the  Special  Window  viz.  SWAMIH  Investment  Fund-I  with  a target  size  of  INR  12500  crore.    The  total  amount  contribution  to  this  fund  so  far  is  INR  10,530  crore, including an amount of INR 5000 crore by Government of India.  The funding under 'Special Window' is considered on the receipt of reference from lenders and their approval for providing senior debt to the developer.  As per the study commissioned by SBICAP Ventures Limited, 2,202 housing projects in the affordable  and  mid-income  segment  comprising  approximately  4.58  lakh  launched  units  are  stalled (including  NPA/NCLT  projects).    A  Statement  indicating  details  of  stalled  projects  in  major  cities  is  at Annexure.

- (c): The broad criteria for selection of housing projects for funding through the special window are:
- (i) Stalled for lack of adequate funds
- (ii) Affordable and middle-income category
- (iii) Net worth positive projects
- (iv) RERA registered
- (v) Priority for projects very close to completion.

The decision making in respect of selection of housing projects that may be funded by these AIFs is vested with the respective Investment Managers, Investment Committee and Advisory Board of the AIF.

- (d)  &  (e):      Hon'ble  Supreme  Court,  vide  order  dated  20.01.2020,  in  Civil  Appeal  No.  10856/  2016  Bhupinder Singh Vs Unitech Ltd, has approved the appointment of Shri. Yudhvir Singh Malik, IAS (Retd.) as CMD and seven others persons as nominee directors of the Central Government in place of the existing Board  of  Directors  and  has  directed  them  to  prepare  a  resolution  framework  within  a  period  of  two months and submit the same to the Court.  Currently, no project is under implementation under the aegis of  Unitech  Group  Companies  in  the  state  of  Andhra  Pradesh.    However,  Unitech  Limited  was  allotted 'Integrated Vizag Knowledge City' Project in Visakhapatnam under Public-Private Partnership (PPP) mode in  the  year  2007. The project could not take off since the land was not provided by APIIC in spite of a payment of Rs. 270 Cr and the dispute on refund of claim is pending in the Andhra Pradesh High Court since  2011  for  the  appointment  of  Arbitral  Tribunal.    Similarly,  Unitech  was  the  successful  bidder  for implementation of the project 'Integrated Township Project/ Multi-services Aerospace Park' over an area of 350 acres of land in Ranga Reddy District and it deposited the full amount of Rs. 165 crore in the year 2007-08 for this purpose. The State Agency failed to make the land available to the Company and refund of the said money is a subject matter of litigation in the Supreme Court at present.
- (f): The claimants can approach Special Court, PMLA during trial proceedings claiming their right to the property attached under Prevention of Money Laundering Act, 2002 (PMLA).  Section 8(8) of PMLA provides power to Special Court, PMLA to order to restore confiscated property or part thereof, if the Special Court found the claimant with a legitimate interest in the property.

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Annexure Statement referred to in reply to parts (a) to (c) of Lok Sabha Unstarred Question No.4653  for answer on 23.03.2020

| Units            |             |         | MSft   | MSft       | MSft   | Value (in Cr.)   | Value (in Cr.)   | Value (in Cr.)   |
|------------------|-------------|---------|--------|------------|--------|------------------|------------------|------------------|
| Cities Supply    | Absorptio n | Unsold  | Supply | Absorption | Unsold | Supply           | Absorption       | Unsold           |
| NCR 199,961      | 150,934     | 49,027  | 285.4  | 215.4      | 70.0   | 135,363          | 101,374          | 33,990           |
| MMR 97,280       | 45,559      | 51,721  | 92.1   | 41.1       | 50.9   | 106,918          | 45,467           | 61,451           |
| Bengaluru 38,947 | 18,474      | 20,473  | 54.5   | 25.6       | 28.9   | 26,930           | 12,587           | 14,342           |
| Chennai 18,065   | 9,340       | 8,725   | 19.6   | 10.4       | 9.2    | 7,832            | 4,231            | 3,601            |
| Kolkata 17,004   | 6,962       | 10,042  | 18.9   | 8.6        | 10.3   | 7,064            | 3,508            | 3,556            |
| Pune 18,545      | 6,732       | 11,813  | 19.8   | 7.8        | 12.1   | 11,498           | 4,596            | 6,902            |
| Hyderabad 6,269  | 2,424       | 3,845   | 9.3    | 3.7        | 5.6    | 3,019            | 1,140            | 1,878            |
| Ahmedabad 2,319  | 763         | 1,556   | 3.4    | 1.0        | 2.3    | 1,264            | 368              | 896              |
| Tier-2 59,369    | 32,989      | 26,380  | 79.1   | 43.8       | 35.3   | 27,878           | 15,119           | 12,759           |
| Total 457,759    | 274,177     | 183,582 | 582    | 357        | 225    | 327,766          | 188,390          | 139,377          |

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