Delayed realty projects in India face procedural roadblocks now
Real Estate

Delayed realty projects in India face procedural roadblocks now

Homebuyers can expect further delays in the delivery of stalled projects due to procedural complexities, a lack of consensus among stakeholders, and the lack of time-bound clearances from authorities.

Homebuyers and financial institutions across the country have been pinning their hopes on the dedicated bankruptcy court for resolution and a much-needed push to deliver over 100,000 such houses, the majority of which have been stuck for more than a decade.

Despite the Supreme Court appointing new boards or designated authorities to complete pending projects, little progress has been made due to disagreements among various stakeholders, including government authorities and secured lenders.

There has been little progress in the completion of projects in the larger cases, such as Unitech's because the scheme formulated by the new board is facing objections from authorities and secured lenders on grounds of unfair and arbitrary treatment of them under the plan.

In the Amrapali case, the court-appointed developer NBCC in 2019 to complete the projects, but due to a lack of funds, it was unable to make much progress.

The Corporate Insolvency Resolution Process (CIRP) in the Jaypee Infratech case has been ongoing for four years, and the resolution plan was approved by the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code (IBC) is awaiting approval by the National Company Law Tribunal (NCLT).

Bidders interested in working on the resolution are also deterred by the plan's delay in implementation.

Unitech's management, led by the former promoters Chandras, was removed by the Supreme Court two years ago, and an independent board of directors was appointed. However, the board has been unable to complete any houses in the last two years due to the scheme's pending approval before the Supreme Court.

In the case of Unitech, it is understood that the majority of projects have significant cash reserves to meet the needs of not only the project's home buyers, but also all of the project's stakeholders.

Image Source


Also read: Uttar Pradesh govt yet to resolve issues of Sports City flat buyers

Homebuyers can expect further delays in the delivery of stalled projects due to procedural complexities, a lack of consensus among stakeholders, and the lack of time-bound clearances from authorities. Homebuyers and financial institutions across the country have been pinning their hopes on the dedicated bankruptcy court for resolution and a much-needed push to deliver over 100,000 such houses, the majority of which have been stuck for more than a decade. Despite the Supreme Court appointing new boards or designated authorities to complete pending projects, little progress has been made due to disagreements among various stakeholders, including government authorities and secured lenders. There has been little progress in the completion of projects in the larger cases, such as Unitech's because the scheme formulated by the new board is facing objections from authorities and secured lenders on grounds of unfair and arbitrary treatment of them under the plan. In the Amrapali case, the court-appointed developer NBCC in 2019 to complete the projects, but due to a lack of funds, it was unable to make much progress. The Corporate Insolvency Resolution Process (CIRP) in the Jaypee Infratech case has been ongoing for four years, and the resolution plan was approved by the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code (IBC) is awaiting approval by the National Company Law Tribunal (NCLT). Bidders interested in working on the resolution are also deterred by the plan's delay in implementation. Unitech's management, led by the former promoters Chandras, was removed by the Supreme Court two years ago, and an independent board of directors was appointed. However, the board has been unable to complete any houses in the last two years due to the scheme's pending approval before the Supreme Court. In the case of Unitech, it is understood that the majority of projects have significant cash reserves to meet the needs of not only the project's home buyers, but also all of the project's stakeholders. Image SourceAlso read: Uttar Pradesh govt yet to resolve issues of Sports City flat buyers

Next Story
Infrastructure Urban

Holcim Foundation Reveals 2025 Sustainability Award Winners

The Holcim Foundation has announced the 20 winners of its 2025 Awards, honouring pioneering projects that redefine sustainability in the built environment. Spanning diverse geographies — from Bhutan to Medellín — the winning entries exemplify how design and engineering can create resilient communities, restore ecosystems, and set new industry benchmarks for responsible construction.“These outstanding projects use the right materials in the right places, engage communities from the very beginning, and treat nature as an essential design partner,” said Laura Viscovich, Executive Directo..

Next Story
Infrastructure Transport

Progota India Secures RDSO Clearance for Kavach 4.0

Concord Control Systems, a leading manufacturer of embedded electronic systems and critical rail-safety solutions, today announced that its associate company, Progota India, has received the Technical Prototype Clearance from the Research Designs and Standards Organisation (RDSO) for Kavach 4.0, the latest version of Indian Railways’ indigenous Automatic Train Protection (ATP) system.With this clearance, Progota has been formally authorized to execute its trial order from South Central Railway and has been recognized as a Developmental Vendor for all upcoming Kavach 4.0 tenders across Indian..

Next Story
Infrastructure Urban

Nupur Recyclers Acquires 5-Acre Industrial Land in Sampla, Haryana

Nupur Recyclers (NRL), a leading name in India’s recycling and industrial waste management sector, announced the acquisition of a 5-acre industrial land parcel in Sampla, Bahadurgarh, Haryana, marking a key milestone in its expansion strategy.Strategically located along the highway, the site offers excellent connectivity and logistics advantages for heavy vehicle movement and material transport. The land, designated for industrial use under the Red Zone, aligns with Nupur Recyclers’ operational and environmental compliance framework. It is free from any legal disputes or encumbrances, ensu..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?