Governance – Page 2 – FindMyProperty

After a long wait, a conceivable solution might await the frustrated homebuyers who bought property in Amrapali projects and Jaypee Infratech in Noida.

The projects can possibly be taken over by the State-run NBCC, which will ensure the completion of the projects, after which it will hand them to the genuine owners. However, NBCC has demanded for full control of the funds through an escrow account.

As per the reports, the company’s charge would stay with the current promoters, or with the IRP (Insolvency Resolution Professional) in some cases.

After the homebuyers approached the government seeking solution, the high-level committee has met three times to restore the problems. The homebuyers want a government agency to handle the incomplete projects.

After the completion of the projects, a call can be taken on dividing the leftover money lying with the escrow account.

NBCC will ensure the completion of the projects by engaging third party construction companies to which it will act as a PMC (Project Management Consultant).

Amrapali has effectively made a representation to the Supreme Court, saying they need the assistance of NBCC to finish the venture, and they might want to hand it over to NBCC, or some other comparative government body, to complete the rest of the work. According to the affidavit submitted with the Supreme Court, Amrapali group will build up an aggregate of 40,987 units, which require Rs 5,112 crore for completion.

For NBCC, which is as of now executing ventures worth Rs 80,000 cr all over India, assuming control over the unfinished ventures may not be a colossal task as assessments suggest that the aggregate cost of finishing both the projects — Jaypee and Amrapalli — may not exceed Rs 15,000 crore. While NBCC may not gain much by taking up these unfinished projects, it might thusly open up more doors for the organization.

The Reserve Bank of India made a decision to increase the limits on loans for PSL (Priority sector lending) which may assist in the first-time homebuyers get greater amounts of loans at better terms which in turn may boost the sales of Affordable Houses.

RBI revised the housing loan limit for PSL from Rs 28 lakh to Rs 35 lakh in cities with a minimum population of 10 lakh and from Rs 20 lakh to Rs 25 lakh in other cities. This is on condition that the overall cost of the house does not exceed Rs 45 lakh for metropolitan cities and Rs 30 lakh for other cities.

The RBI has also raised concerns over rising minor crimes and suggests at lesser loan to value of the property.

Reduced home loan interest rates and necessary impetus by the government has helped to boost sales of the affordable housing sector. The housing sector has been supported by the government through lower GST rates, affordable housing fund, increased duration of loans CLSS of Pradhan Mantri Awas Yojana (PMAY) and extended income tax benefits to apartments of maximum carpet area of 645 sq ft.

According to Khushru Jijina, MD of Piramal Finance & Piramal Housing Finance the decision would up the sales of affordable houses which will in turn help in economic growth.

The rating agency CRISIL is of the view that the decision will allow most of the housing loans given by banks to qualify for PSL which would be positive for the banks. CRISIL also added that as of April 2018, 37% of the housing loans given by the banks qualified for the PSL.