MUMBAI: Unused industrial land of bankrupt companies could help achieve the country’s low-cost housing goals if state governments agree, experts said.
If affordable housing projects are built on such land, it will not only fetch higher valuation for lenders seeking to recover their loans, but also support the weaker sections of society by providing them with shelter. An industrial land is not allowed to be developed for residential housing.
Liquidated companies LML, the motorcycle maker, and picture tube manufacturer Samtel ColorBSE 4.76% have 140 acres of land in Kanpur and Ghaziabad, while real estate group Amrapali holds 25 acres in the National Capital Region.
In the case of Amrapali, the Supreme Court has asked the developer to submit a plan to deliver apartments to all homebuyers.
“This would be a win-win situation for lenders, workers and economically weaker sections and the lower-income group segment of society,” said Anil Goel, founder of AAA Insolvency Professionals, who is the resolution professional-cum-liquidator for LML and Samtel. “The government will also meet its target of affordable housing. Even the workers can be offered a home partly against their claim of wages in these companies.”
The government is targeting “Housing for All” by 2022.