Executive Summary:
The Ministry of Housing and Urban Affairs addressed concerns in Lok Sabha regarding delays in flat delivery by private builders and the resulting hardship for homebuyers. The Real Estate Regulation and Development Act (RERA) of 2016 was enacted to regulate the relationship between homebuyers and promoters, ensuring transparency and accountability. A committee, chaired by Shri Amitabh Kant, was formed in March 2023 to examine pre-RERA stalled projects, particularly in the National Capital Region (NCR).
Key Points / Main Content:
RERA and Regulatory Framework:
* RERA was enacted under the concurrent list of the Constitution to regulate the contractual relationship between homebuyers and promoters.
* State Governments are responsible for notifying RERA rules and establishing Real Estate Regulatory Authorities and Appellate Tribunals.
* Real estate projects must be registered with the Real Estate Regulatory Authority of the relevant State/Union Territory.
* Upon lapse/revocation of registration, the Regulatory Authority can take action to complete remaining development works with the appropriate Government, by competent authority or an association of allottees.
Addressing Stalled Projects:
* A committee was formed in March 2023 under Shri Amitabh Kant to examine pre-RERA stalled projects.
* The committee's report identified lack of financial viability as a primary reason for non-revival of legacy stalled projects and recommended measures to improve financial viability.
* The report was circulated to all State Governments in August 2023 for necessary action.
* Uttar Pradesh has formulated a Policy Package (Order No. 7774774202360112023 dated 21.12.2023) to provide relief to homebuyers of stalled projects in Noida and Greater Noida.
Financial Relief Measures:
* The Government has established the SWAMIH investment fund and SWAMIH 2.0 of Rs. 25,000 crores and Rs. 15,000 crores respectively, to fund stalled projects.
* SWAMIH funds projects that are net-worth positive, RERA-registered, and declared as NPAs or are pending proceedings before the National Company Law Tribunal under the IBC.
Impact Analysis:
State Governments:
* Impact: Required to notify RERA rules, establish regulatory authorities and tribunals, and take action on the Amitabh Kant committee report.
* Action Required: Implement RERA provisions, consider the recommendations of the Amitabh Kant committee report, and formulate policies to address stalled projects.
Homebuyers:
* Impact: Protected through RERA regulations, with avenues for legal recourse and potential financial protection for stalled projects.
* Action Required: Register complaints with the Real Estate Regulatory Authority, explore legal options, and stay informed about available relief measures like SWAMIH funding.
Private Builders/Promoters:
* Impact: Subject to RERA regulations, including registration requirements and potential actions for non-compliance.
* Action Required: Register projects with the Real Estate Regulatory Authority, adhere to RERA guidelines, and explore options like SWAMIH funding for stalled projects.
Key Entities Referenced
Real Estate Regulation and Development Act, 2016 (RERA): An act enacted by the Parliament to regulate the contractual relationship between homebuyers and promoters, ensuring transparency and accountability in the Real Estate Sector.
Amitabh Kant: Chair of the committee constituted by Ministry of Housing and Urban Affairs to examine the issue of pre-RERA stalled projects.
National Capital Region (NCR): A region where many legacy stalled real estate projects are located, according to the Amitabh Kant committee report.
Uttar Pradesh: A State Government that formulated a Policy Package to provide relief to the homebuyers of stalled real estate projects in Noida and Greater Noida.
Noida: City in Uttar Pradesh where the state government has formulated a policy package for stalled real estate projects.
Greater Noida: City in Uttar Pradesh where the state government has formulated a policy package for stalled real estate projects.
Special Window for Completion of Affordable and Mid-Income Housing (SWAMIH): An investment fund established by the Government to give relief to homebuyers of stalled projects.
National Company Law Tribunal (NCLT): A quasi-judicial body that adjudicates issues relating to Indian companies.
GOVERNMENT OF INDIA
MINISTRY OF HOUSING AND URBAN AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 4636
TO BE ANSWERED ON AUGUST 21, 2025
DELAYS IN THE DELIVERY OF FLATS BY PRIVATE BUILDERS
NO. 4636. DR. AMAR SINGH:
Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:
(a) whether the Government is aware that delays in the delivery of flats by
private builders have caused considerable hardship for homebuyers who
have been running from pillar to post for years and if so, the action taken
to resolve this crisis;
(b) whether the Government has initiated any specific measures based on
the recommendations outlined in the Amitabh Kant report regarding the
regulation of private builders and the timely delivery of residential
projects and if so, the details thereof;
(c) the steps taken to ensure that the buyers waiting for years without
adequate support or compensation are provided with legal recourse,
financial protection or alternative solutions; and
(d) whether it is a fact that many buyers, even after investing their hard-
earned money, have been waiting for over 12-15 years for flats promised
by private developers, specifically in the National Capital Region (NCR)
and if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE
MINISTRY OF HOUSING AND URBAN AFFAIRS
(SHRI TOKHAN SAHU)
(a) to (d): Land’ and ‘Colonization’ are State subjects. However, by deriving
powers from the concurrent list of seventh schedule of the Constitution
of India, the Real Estate (Regulation and Development) Act, 2016 [RERA]
was enacted by the Parliament to regulate the contractual relationship
between homebuyers and promoters. RERA aims to ensure transparency
& accountability in the Real Estate Sector, thereby protecting the
interests of the homebuyers.
…2/--2-
As per Section 2 (g) of RERA, State Government is the ‘Appropriate
Government’ for notifying the Rules and establishing Real Estate
Regulatory Authority and Appellate Tribunal in the State. Under the
provisions of RERA, the real estate projects are required to be registered
with the Real Estate Regulatory Authority of the State / Union Territory
(UT) concerned. Further, on lapse or revocation of the registration under
RERA, the Regulatory Authority, in consultation with the appropriate
Government, is empowered to take action for carrying out the remaining
development works of the project by competent authority or by
association of allottees.
Further, to examine the issue of pre-RERA stalled projects, a committee
was constituted by Ministry of Housing and Urban Affairs under the
Chairmanship of Shri Amitabh Kant in March 2023. As per the report of
the committee, many of the legacy stalled projects are in NCR. Further,
lack of financial viability is a primary reason for non-revival of the legacy
stalled projects. Accordingly, the Committee recommended a slew of
measures aimed towards improving the financial viability of these real
estate projects. The aforesaid report was circulated to all the State
Governments in August 2023 for necessary action. As per the
information available, the State Government of Uttar Pradesh has
formulated a Policy / Package vide Order No. 7774/77–4–2023–6011/2023
dated 21.12.2023, to provide relief to the homebuyers of stalled real
estate projects in Noida and Greater Noida, along the lines of
recommendations of the Committee.
Moreover, in order to give relief to homebuyers of stalled projects,
Government has established a Special Window for Completion of
Affordable and Mid-Income Housing (SWAMIH) investment fund and
SWAMIH 2.0 of Rs. 25,000 crores and Rs. 15,000 crores respectively, for
funding stalled projects that are net-worth positive and registered under
RERA, including those projects that have been declared as Non-
Performing Assets (NPAs) or are pending proceedings before the
National Company Law Tribunal under the IBC.
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