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.

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

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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

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