The government on Saturday announced the setting up of a nearly Rs 20,000-crore stress fund + for completion of stalled affordable and middle-income housing projects that have not been classified as non-performing assets(NPAs) and are not facing insolvency action.
The much-awaited move is expected to potentially benefit 3.5 lakh dwelling units across the country but offers little comfort to lakhs of home-buyers in nearly 400 projects held up in National Company Law Tribunal, dealing with insolvency cases. There are also a few thousand developers whose fund flow is choked as banks have classified them as NPAs for failure to repay loans. The government said their resolution will have to be through IBC and NCLT processes.
With new buyers for insolvency-hit real estate projects being tough to find, home-buyers were banking on the stress fund to help complete their projects, some of which were launched over a decade ago.