CREDAI steps in to resolve homebuyers-developers tussle in delayed NCR projects

Realty developers’ apex body the Confederation of Real Estate Developers’ Association of India or CREDAI has offered to bring in its member and non-member developers as investors or co-developers into delayed or stuck projects particularly in the National Capital Region. CREDAI has held a series of meetings with political leadership in Uttar Pradesh and presented a bouquet of options to the government, the developers’ body said in a release. It has stepped in to resolve the woes of homebuyers suffering delays in delivery of flats and are now faced with losing out to secured creditors under insolvency procedure. The main thrust of these options is to bring in credible and resourceful developers into these projects to complete the projects. These developers will use an escrow mechanism to ensure that cash flows from unsold portion of the project inventories are used up towards balance cost of construction, CREDAI added. CREDAI Chairman Getamber Anand and President Jaxay Shah met Hardeep Puri, Union Housing and Urban Affairs Minister on Wednesday. CREDAI representatives highlighted the need for revival of real estate industry as necessary for national GDP growth but also for the solution to the issues faced by homebuyers. Getamber Anand, Chairman CREDAI confirmed the offer to intermediate in the case of delayed projects. "CREDAI enjoys the trust of both homebuyers and financial institutions which is a prerequisite for mutually acceptable solution,” Anand said adding that the basic ingredients of the solution have been submitted to Government of Uttar Pradesh. Jaxay Shah, President, CREDAI described the discussions with Minister of Housing and Urban Affairs as positive and fruitful. "CREDAI has spearheaded the movement for customer protection by setting up Consumer Grievance Redressal Forum much before RERA. However, policing the real estate sector is not sufficient by itself to ensure housing for all or delivery of stalled projects. CREDAI wishes to engage with the Government to realize the full meaning of infrastructure status to affordable housing and improve ease of doing business" said Jaxay Shah.