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10 crore. This clearly shows that the builder never in­tended to com­plete projects and hand them over as it had no money left.”

NCLT ex­pert Venkat Rao also warned that with a num­ber of real es­tate com­pa­nies go­ing into in­sol­vency pro­ceed­ings, a lot is at stake for home-buy­ers.

Ab­hishek Ku­mar, pres­i­dent of NE­FOWA (Noida Ex­ten­sion Flat Own­ers As­so­ci­a­tion) said that home-buy­ers have been in cri­sis since 2008. “De­spite laws such as the Real Es­tate (Reg­u­la­tion and De­vel­op­ment) Act, 2016, no au­thor­ity is will­ing to take any ac­tion.” THERE are three pos­si­ble so­lu­tions to the cri­sis, ac­cord­ing to Ut­tar Pradesh RERA mem­ber Bal­winder Ku­mar. “One is to bring co-de­vel­op­ers into the project, then open an es­crow ac­count for pay­ment from buy- ers to avoid the mis­use of funds.” Sec­ond, he said, is to rereg­is­ter al­ready-reg­is­tered projects, let RERA take over them and award them to an­other de­vel­oper for com­ple­tion.

The third is to ask buy­ers to wait rather than seek a re­fund if the builder’s fi­nances are in place and he has promised a par­tic­u­lar date, Ku­mar added.

The IBC gives home-buy­ers the sta­tus of fi­nan­cial cred­i­tors, but thou­sands of them are los- ing their life sav­ings.

As many as two lakh units in NCR launched in 2013 or be­fore are run­ning be­hind sched­ule, a re­port by Anarock Prop­erty Con­sul­tant said in Septem­ber.

An­other re­cent re­port by Gu­ru­gram-based real es­tate re­search firm PropEquity said nearly 1.80 lakh units val­ued at `1.22 lakh crore are fac­ing an un­cer­tain fu­ture in the NCR. Over 70 per cent of the un­der­con­struc­tion projects are fully sold out but not de­liv­ered even after com­ple­tion dead­lines got over, the re­port said.

While the In­sol­vency and Bank­ruptcy Code (Amend­ment) (IBC) 2018 gave home­buy­ers a say, it is a process which is lit­tle un­der­stood by many, Rao said.

“Also, un­like RERA and con­sumer fo­rums, NCLT is more for cor­po­rate is­sues that makes it a costlier fo­rum for home­buy­ers,” he said.

Jaypee Group ac­counts for as many as 25,000 un­de­liv­ered flats for which money has al­ready been taken from home­buy­ers. The realty firm owes nearly Rs 9,800 crore to var­i­ous banks.

Am­ra­pali Group has over 45,000 in­com­plete units. Staterun NBCC, which has been ap­pointed by the Supreme Court to de­velop the group’s stalled projects, has in­formed the top court that it would be able to com­plete 11,400 apart­ments within 6-12 months of start­ing work.

Am­ra­pali CMD Anil Ku­mar Sharma has even ad­mit­ted to di­vert­ing `2,990 crore to other com­pa­nies to ex­pand his busi­nesses.

Real es­tate ma­jor Unitech failed to de­liver flats to 16,300 buy­ers who col­lec­tively in­vested `7,816 crore in the project.

Bal­winder Ku­mar, UP RERA mem­ber

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