Executive Summary:
The Ministry of Housing and Urban Affairs addresses delays in flat delivery by private builders, a concern raised in Lok Sabha Unstarred Question No. 4636. The government references the Real Estate Regulation and Development Act (RERA) of 2016 and the Amitabh Kant Committee report from March 2023, which was circulated to State Governments in August 2023. Measures include state-level policy packages and the SWAMIH investment fund.
Key Points / Main Content:
RERA and State Government Authority:
* RERA was enacted by Parliament to regulate the relationship between homebuyers and promoters, ensuring transparency and accountability.
* State Governments are responsible for notifying rules and establishing Real Estate Regulatory Authorities and Appellate Tribunals per Section 2(g) of RERA.
* Real estate projects must be registered with the State/UT's Real Estate Regulatory Authority.
Resolution of Stalled Projects:
* If registration lapses or is revoked, the Regulatory Authority can take action, in consultation with the appropriate Government, to complete remaining development.
* The Amitabh Kant Committee was formed in March 2023 to address pre-RERA stalled projects, particularly in the NCR, where lack of financial viability is a major issue.
* The committee's report, recommending measures to improve financial viability, was circulated to all State Governments in August 2023.
* Uttar Pradesh formulated a policy package on December 21, 2023 (Order No. 7774774202360112023) to aid homebuyers in stalled Noida and Greater Noida projects.
Financial Relief Measures:
* The government established SWAMIH and SWAMIH 2.0, investment funds of Rs. 25,000 crores and Rs. 15,000 crores respectively, to fund stalled, RERA-registered projects that are net-worth positive, including NPAs and those in IBC proceedings.
Impact Analysis:
Homebuyers:
* Impact: Aims to provide legal recourse, financial protection, and alternative solutions for those affected by project delays.
* Action Required: To be aware of their rights under RERA, and to utilize available legal and financial avenues for resolution, including engaging with the State Regulatory Authority.
Private Builders/Promoters:
* Impact: Subject to increased regulation, accountability, and potential intervention by regulatory authorities in case of project delays or stalled projects.
* Action Required: Ensure project registration under RERA, maintain transparency in project dealings, and adhere to timelines to avoid penalties and possible revocation of registration.
State Governments:
* Impact: Responsible for implementing RERA, establishing regulatory bodies, and taking necessary actions to resolve stalled projects within their jurisdiction.
* Action Required: Implement the recommendations of the Amitabh Kant Committee report, formulate policies to address stalled projects, and ensure effective functioning of the State Real Estate Regulatory Authority.
Regulatory Authorities:
* Impact: Given powers to regulate projects, and intervene in stalled projects to ensure completion.
* Action Required: Ensure projects are registered, monitor project progress, and take action when necessary to resolve stalled projects, working with the State Government as needed.
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.
Ministry of Housing and Urban Affairs: The central government ministry responsible for housing and urban development in India.
Amitabh Kant: Chair of the committee constituted by the Ministry of Housing and Urban Affairs to examine the issue of pre-RERA stalled projects.
National Capital Region (NCR): A metropolitan region in India which includes Delhi and its surrounding areas in neighboring states.
Uttar Pradesh: A state in India that has formulated a Policy Package to provide relief to homebuyers of stalled real estate projects in Noida and Greater Noida.
Noida: A city in Uttar Pradesh, India where the state government is providing relief to homebuyers of stalled real estate projects.
Greater Noida: A city in Uttar Pradesh, India where the state government is providing relief to homebuyers of 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.
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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