Homebuyers in Noida-Greater Noida Are Worst Hit, with 1.65 Lakh Units Stalled for Rs. 1.18 Billion

On June 26, New Delhi: According to property consultant Anarock, homebuyers who reserved flats in housing projects in the Noida-Greater Noida real estate market are most hit, with more than 1.65 lakh flats worth Rs. 1.18 lakh crore being stopped or considerably delayed in these two cities.

Only housing complexes that had their grand openings in 2014 or earlier were included in the consultant's analysis across seven major real estate markets: Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, and Pune.

Abhay Upadhyay, president of Forum for People's Collective Efforts (FPCE), the leading organization for homebuyers, told PTI that each project's delay should be determined as to why it is taking so long and that remedies should be developed.

He also wanted builders who were in default to face harsh punishment.

A whopping 50% of these 2,40,610 stopped or delayed units, valued at Rs 1,81,410 crore, are in Delhi-NCR alone.

According to Anarock, who provided a further breakdown of the Delhi-NCR statistics, the regions of Noida and Greater Noida account for roughly 70% of all stuck/delayed units, while Gurugram's contribution is only 13%.

There are 1,65,348 units worth Rs. 1,18,578 crore that are stuck or delayed in Noida and Greater Noida.

The Ghaziabad market has 22,128 such units valued at Rs 9,254 crore, compared to Gurugram's 30,733 units worth Rs 44,455 crore that is blocked or delayed.

Together, the stuck/delayed units in Delhi, Faridabad, Dharuhera, and Bhiwadi total 22,401 and are valued at Rs 9,124 crore.

"Over the past ten years, project delays have plagued the Indian real estate industry, notably in the NCR. Even the advent of RERA (the real estate law) had a negligible effect on this, according to Prashant Thakur, senior director and head of research at Anarock.

Additionally, they are paying interest on their mortgages despite the lack of any immediate answers.

Homebuyers have filed lawsuits against defaulting builders in several courts and before the National Company Law Tribunal (NCLT) to protect their financial interests.

For instance, in August 2017 Jaypee Infratech Ltd (JIL) entered the Corporate Insolvency Resolution Process (CIRP).

In June of last year, the Mumbai-based Suraksha group obtained consent from financial creditors and homeowners to takeover the JIL after multiple rounds of bidding. This gave more than 20,000 purchasers hope that they would eventually be able to take possession of their dream apartments.

The NCLT has not yet given the Suraksha group's resolution proposal its approval.

In the instance of Unitech, the Supreme Court granted the Centre permission to establish a new board of nominated directors and assume total managerial control of Unitech, which was formerly the second-largest real estate corporation in the nation.

After the Central government replaced the Unitech board, Yudvir Singh Malik was chosen to serve as the new CMD.

Over 12,000 Unitech homeowners who were experiencing difficulties were supposed to receive relief from this ruling, but the clients are still waiting for the ownership of their apartments.

The Amrapali Stalled Projects and Investment Reconstruction Establishment (ASPIRE) and the Supreme Court's oversight have enabled the state-owned NBCC to complete several residential projects in Noida and Greater Noida.

40,000 prospective homeowners are stranded in many Amrapali Group projects.

"There are still a significant number of postponed projects from the age before RERA that are unfinished. Such projects must be accurately recognized, and the reason for the delay must be determined "FPCE's Upadhyay told PTI.

He asserted that the promoters of such initiatives ought to be dealt with harshly, including by recovering money from his assets, if the lack of cash as a result of fund diversion is the primary cause.

"However, the relevant authorities must seek to resolve the concerns on a case-by-case basis if there are other administrative or regulatory reasons, "added Upadhyay.

According to the FPCE President, the RERA authorities should take the initiative to make sure that projects that have been postponed are finished as soon as possible.

In the MMR, blocked or delayed units are second only to those in the Delhi-NCR market. Bengaluru, Chennai, and Hyderabad are southern cities with only 9%.

Compared to Kolkata, which has a 5% share, Pune has a 9% stake.

In the MMR, there are 1,28,870 units worth Rs 1,84,226 crore that are stalled or delayed. 28,072 crore worth of stalled or delayed units is in Bengaluru.

11,450 units in Hyderabad are stranded or delayed, costing Rs 11,310 crore.

There are currently 5,190 units worth Rs 3,731 crore stranded or considerably delayed in Chennai. Pune has 44,250 stuck/delayed units valued at around Rs 27,533 crore, while Kolkata has 23,540 such units costing Rs 11,847 crore.

Anarock offers apartments on behalf of developers and specializes in real estate brokerage. In the previous fiscal year, it increased its income by 32% to Rs 402 crore.

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