CREDAI has stepped in to resolve the woes of homebuyers who are suffering delays in delivery of flats and are now faced with losing out to secured creditors under insolvency procedure. It has held a series of meetings with political leadership in Uttar Pradesh and presented a bouquet of options to the government. The main thrust of these options is to bring in credible and resourceful developers into the delayed projects, as investors or co-developers who would complete the projects and use an escrow mechanism to ensure that cash flows from unsold portion of the project inventories are used up towards balance cost of construction.
Getamber Anand, Chairman, CREDAI, confirmed the offer to intermediate in the case of delayed projects. He said "CREDAI has long stood to safeguard customer interests and has the requisite technical and financial depth to revive stalled projects. More importantly, CREDAI enjoys the trust of both homebuyers and financial institutions, which is a prerequisite for mutually acceptable solution." The basic ingredients of the solution have been submitted to the Government of Uttar Pradesh.
Getamber Anand, Chairman, and Jaxay Shah, President, CREDAI, has also called upon Hardeep Puri, Union Housing and Urban Affairs Minister. CREDAI representatives highlighted the need for revival of real estate industry as necessary for national GDP growth but also for the solution to the issues faced by homebuyers.
Jaxay Shah, President, CREDAI, described the discussions with the Minister of Housing and Urban Affairs as positive and fruitful. "CREDAI has spearheaded the movement for customer protection by setting up Consumer Grievance Redressal Forum much before RERA. However, policing the real estate sector is not sufficient by itself to ensure housing for all or delivery of stalled projects. CREDAI wishes to engage with the government to realise the full meaning of infrastructure status to affordable housing and improve ease of doing business," said Jaxay Shah summing up the meeting.