At an ASSOCHAM event attended by the housing and urban affairs minister Hardeep Puri here on Wednesday, the real estate wing of the industry lobby made the case for creation of a fund by the government that can be utilized by the cash starved developers to complete their projects.
“Court cases won’t help completing incomplete projects. There is a need to do some hand-holding. The government should create a fund by raising bond or other financial instruments. Developers can borrow at lower interest rate only for completing project,” said Naveen Raheja, former chairman of real estate committee of ASSOCHAM.
The fact that almost all the builders are facing problems in completing their projects indicates that are some real issues that need to be sorted as “everyone can’t be bad.” More than 60% of the complaints filed in the country’s apex consumer body relate to builders.
While builders have pointed at fund crunch and investor-buyers not paying instalments, they have been accused of diverting buyers’ money for new projects rather than focussing on completing the ongoing projects for which payments had been made.
Addressing the builders, Puri said his ministry will soon set up a unit, which will reach out to all stakeholders in major schemes that are being implemented. These include PM Awas Yojna, Smart Cities, AMRUT and heritage city development programme.