Recently, Union Finance Minister Nirmala Sitharaman announced a Rs 25,000 crore fund for the completion of the stalled real estate housing projects. The step is taken to help the developers and home buyers during such a distress time of the realty sector.
Significantly, the fund does not include the National Capital Region (NCR) giant projects such as those of Unitech, Amrapali and Jaypee Infratech. The step to exclude these projects is taken in the background of the ongoing judicial procedures on these projects.
Projects by these companies are continuously facing litigations in the high courts and the apex court. Moreover, the fund only includes affordable and middle-income housing projects.
In the opinion of the experts, the fund is ‘not sufficient’ to resolve the issues of stalled real estate projects, but many of them have applauded the intentions and actions of the government to address the challenge.
The government announced that the relief fund would help around 1,600 projects with 4.58 lakh units. The government stated that the fund is initiated to boost the sentiments of the buyers that would lead to considerable employment.
On the other hand, the Mumbai Metropolitan Region (MMR) region is likely to get the most significant chunk out of the fund although there are no direct answers of how the fund will relief all the 92,000 unfinished units facing a cash crunch.
The MMR holds the highest number of delayed units at around 2,10,000, followed by NCR at over 2,00,000 units.
Earlier it was said that NCR would benefit out the most of the fund, due to the exclusion of significant projects in the region, experts believe MMR has better chances of receiving the most.