Lok Sabha Question No. 84 (UNSTARRED), answered on 2018-12-11
Subject: Housing Projects
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: SHRIKANT EKNATH SHINDE, PRITAM GOPINATH MUNDE, KUNWAR PUSHPENDRA SINGH CHANDEL, Shrirang Appa Barne, VINAYAK BHAURAO RAUT, DHARMENDRA YADAV

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 84

## TO BE ANSWERED ON DECEMBER 11, 2018

## HOUSING PROJECTS

No. 84

DR. SHRIKANT EKNATH SHINDE, DR. PRITAM GOPINATH MUNDE, SHRI KUNWAR PUSHPENDRA SINGH CHANDEL, SHRI SHRIRANG APPA BARNE, SHRI VINAYAK BHAURAO RAUT, AND SHRI DHARMENDRA YADAV:

## Will  the  Minister  of  HOUSING  AND  URBAN AFFAIRS be pleased to state:

- (a) whether thousands of Housing projects are stalled across  the  country  as  builders  are  unable  to  complete these  projects  for  want  of  funds  and  if  so,  the  details thereof, State-wise including Bundelkhand;
- (b) whether the common people are suffering as they have invested their hard-earned money for purchasing houses from the builders and if so, the reaction of the Government thereto;
- (c) whether the Government has any plan for completing the stalled housing projects of builders through the Government agencies and if so, the details in this regard;
- (d) whether  the  Ministry  has  requested  the  Ministry  of Finance  to  create  stress  funds  to  complete  the  stalled housing  projects  and  if  so,  the  details  and  outcome thereof; and

- (e) the  other  steps  taken  by  the  Government  to  provide relief to the buyers of these houses?

## ANSWER

## THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF HOUSING AND URBAN AFFAIRS

## (SHRI HARDEEP SINGH PURI)

- (a& b):  Ministry  of  Housing  and  Urban  Affairs  (MoHUA)  does  not maintain information about the stalled housing projects of any State/Union  Territory.  As  per  provisions  of  the  Real  Estate (Regulation and Development) Act, 2016 (RERA), the 'appropriate  Government'  i.e.  States/Union  Territories  (UTs) are  to  establish  the  Real  Estate  Regulatory  Authority  to regulate and develop the real estate sector in the concerned State/UT. The Real Estate Regulatory Authority of the concerned State/UT is required to publish and maintain a web portal containing relevant details of all real estate projects for which registration has been given for public viewing.
- (c): No, madam.

However,Hon'ble Supreme Court of India has directed NBCC (India)  Limited  (a  Government  of  India  enterprise)  to submit its proposal for completion of the projects of Amrapali Group and accordingly NBCC has submitted a proposal to the Hon'ble Supreme Court for completion of 16 projects ofAmrapali  Group  in  Noida  and  Greater  Noida  subject  to various conditions including arranging funds.

- (d):   Based on the recommendations of the High Level Committee constituted by the Government of Uttar Pradesh to redress the issues of home buyers, and affected parties of Noida, Greater Noida and Yamuna Expressway Authority under the chairmanship of the Secretary, Ministry of Housing and Urban Affairs;  this  Ministryhas  requested  Department  of  Financial Services, to take up the matter with the Reserve Bank of India (RBI)  (i)  for  issuing  clarifications  on  their  circular  dated  12 th February, 2018 related to 'Revised Framework for Resolution of Stressed Assets' and (ii) to permit last mile funding of the projects based on the concept of Last in First Out (LIFO) model where the investor who puts in his money at the last stage to complete the stalled projects, exits first.
- (e):   RERA has been enacted to protect the interest of homebuyers. Section 4 of RERA provides for compulsory deposit of seventy percent of amount  realised for real estate project from allottees  in  a  separate  bank  accountto  cover  the  cost  of construction  and  land  cost.  RERA  also,  interalia,  makes  the promoter liable for refund of amount, with interest and compensation, in case developer fails to complete or is unable to give possession of apartment, plot, building to home buyers; as per the terms of the agreement for sale.

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