Delayed realty projects in India face procedural roadblocks now
Real Estate

Delayed realty projects in India face procedural roadblocks now

Homebuyers can expect further delays in the delivery of stalled projects due to procedural complexities, a lack of consensus among stakeholders, and the lack of time-bound clearances from authorities.

Homebuyers and financial institutions across the country have been pinning their hopes on the dedicated bankruptcy court for resolution and a much-needed push to deliver over 100,000 such houses, the majority of which have been stuck for more than a decade.

Despite the Supreme Court appointing new boards or designated authorities to complete pending projects, little progress has been made due to disagreements among various stakeholders, including government authorities and secured lenders.

There has been little progress in the completion of projects in the larger cases, such as Unitech's because the scheme formulated by the new board is facing objections from authorities and secured lenders on grounds of unfair and arbitrary treatment of them under the plan.

In the Amrapali case, the court-appointed developer NBCC in 2019 to complete the projects, but due to a lack of funds, it was unable to make much progress.

The Corporate Insolvency Resolution Process (CIRP) in the Jaypee Infratech case has been ongoing for four years, and the resolution plan was approved by the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code (IBC) is awaiting approval by the National Company Law Tribunal (NCLT).

Bidders interested in working on the resolution are also deterred by the plan's delay in implementation.

Unitech's management, led by the former promoters Chandras, was removed by the Supreme Court two years ago, and an independent board of directors was appointed. However, the board has been unable to complete any houses in the last two years due to the scheme's pending approval before the Supreme Court.

In the case of Unitech, it is understood that the majority of projects have significant cash reserves to meet the needs of not only the project's home buyers, but also all of the project's stakeholders.

Image Source


Also read: Uttar Pradesh govt yet to resolve issues of Sports City flat buyers

Homebuyers can expect further delays in the delivery of stalled projects due to procedural complexities, a lack of consensus among stakeholders, and the lack of time-bound clearances from authorities. Homebuyers and financial institutions across the country have been pinning their hopes on the dedicated bankruptcy court for resolution and a much-needed push to deliver over 100,000 such houses, the majority of which have been stuck for more than a decade. Despite the Supreme Court appointing new boards or designated authorities to complete pending projects, little progress has been made due to disagreements among various stakeholders, including government authorities and secured lenders. There has been little progress in the completion of projects in the larger cases, such as Unitech's because the scheme formulated by the new board is facing objections from authorities and secured lenders on grounds of unfair and arbitrary treatment of them under the plan. In the Amrapali case, the court-appointed developer NBCC in 2019 to complete the projects, but due to a lack of funds, it was unable to make much progress. The Corporate Insolvency Resolution Process (CIRP) in the Jaypee Infratech case has been ongoing for four years, and the resolution plan was approved by the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code (IBC) is awaiting approval by the National Company Law Tribunal (NCLT). Bidders interested in working on the resolution are also deterred by the plan's delay in implementation. Unitech's management, led by the former promoters Chandras, was removed by the Supreme Court two years ago, and an independent board of directors was appointed. However, the board has been unable to complete any houses in the last two years due to the scheme's pending approval before the Supreme Court. In the case of Unitech, it is understood that the majority of projects have significant cash reserves to meet the needs of not only the project's home buyers, but also all of the project's stakeholders. Image SourceAlso read: Uttar Pradesh govt yet to resolve issues of Sports City flat buyers

Next Story
Real Estate

MAN Industries Monetises Navi Mumbai Land for TRs 7.20 Bn

In a strategic move to unlock value from its non-core assets, Merino Shelters Pvt Ltd (MSPL), a wholly owned subsidiary of MAN Industries (India), has entered into a development agreement with Paradise Green-Spaces LLP to monetize a prime land parcel in Nerul, Navi Mumbai, valued at approximately Rs 7.20 to 7.70 billion.The transaction, finalized on March 31, 2025, grants development rights for a approximately 6-acre plot located directly opposite the D.Y. Patil Stadium, one of Navi Mumbai’s most prominent landmarks. The location also benefits from its proximity to the upcoming Navi Mumbai I..

Next Story
Real Estate

Maharashtra Ups Stamp Duty Rates for FY 2025–26

The Maharashtra government has announced an increase in Ready Reckoner Rates (RRR) for the financial year 2025-26, a move that is likely to influence property valuations, stamp duty, and registration charges across the state. The revised rates come into effect starting today, April 1, and mark the first revision since 2022–23.The State Registration and Stamps Department issued a notification late on March 31 confirming an average hike of 3.89 per cent across Maharashtra. These government-notified rates serve as the minimum property value benchmarks for tax calculations during transactions an..

Next Story
Infrastructure Urban

Rosatom Maps Long-Term Growth for Arctic Trade Route

At the VI International Arctic Forum: ""The Arctic – the Territory of Dialogue"", Russia’s state nuclear corporation Rosatom unveiled its long-term vision for the development of the Northern Sea Route (NSR) — a key transportation corridor linking Europe and Asia through the Arctic.During a session on the “Long-Term Development Model for the NSR,” Alexey Likhachev, Director General of Rosatom, emphasized the importance of forward-looking planning to handle rising cargo demands. He highlighted that the NSR saw a record 38 million tons of cargo in 2024, and projections suggest future tr..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?