Home buyers can approach banks for loan revival; Rs 25,000-cr fund not for projects in higher courts: Govt

The FAQs stated funding will be supplied to the RERA-registered inexpensive and middle-income housing projects that are stalled for lack of ample funds, however their net well worth be positive (including NPAs and tasks present process NCLT proceedings).
NEW DELHI: A day after saying a Rs 25,000-crore stress fund for stalled housing projects, the government on Thursday counseled homebuyers to strategy lenders for additional borrowing or revival of their loans, while clarifying that initiatives facing litigation in greater courts will now not be included beneath the scheme.
The finance ministry additionally stated the maximum funding will be Rs four hundred crore for any single mission that will be seeking assistance from the ‘special window’ or the choice investment fund (AIF) for completion of the 1,508 projects comprising about 4.58 lakh units.
“Homebuyers are counseled to attain out to their respective lending establishments to are trying to find essential preparation for extra borrowing or revival of their present home loans within the existing prison and regulatory framework and general board authorized insurance policies of the lending institutions,” said the regularly asked questions (FAQs) issued by using the finance ministry in this regard.
The FAQs also stated the proposed AIF will no longer make investments in tasks that are dealing with litigation in the high courts or the Supreme Court.
“The focus of this specific window will be on the projects that are stalled for lack of building funding.
“It shall additionally appear at initiatives that are NPAs (non-performing assets) or present process NCLT (National Company Law Tribunal) proceedings, that can begin building straight away after funds are made available,” it said.
The fund will be set up as a Category-II AIF debt fund registered with the Securities and Exchange Board of India and would be professionally run. SBICAP Ventures Limited will be engaged as the funding manager.
The FAQs similarly stated funding will be provided to the RERA-registered less expensive and middle-income housing initiatives that are stalled for lack of ample funds, but their net worth must be positive (including NPAs and tasks undergoing NCLT proceedings).
Projects that are “very close to completion” will get precedence in funding.
Affordable and mid-income housing projects are these whereby residing units do now not exceed 200 rectangular metre carpet area and are priced up to Rs 2 crore in Mumbai Metropolitan Region, up to Rs 1.5 crore in National Capital Region, Chennai, Kolkata, Pune, Hyderabad, Bengaluru and Ahmedabad, and up to Rs 1 crore in the rest of the country.
The Union Cabinet had on Wednesday accepted the institution of a ‘special window’ fund to provide priority debt financing for the completion of stalled housing projects.
Finance Minister Nirmala Sitharaman on September 14 had announced that a specific window for affordable and middle-income housing will be created. The extraordinary window used to be to provide last-mile funding for housing projects that are stressed.
Subsequently, inter-ministerial consultations and a number of stakeholder consultations have been held with the housing industry which includes housing finance companies, banks, non-banking economic companies, traders and real estate developers.
Problems being confronted via homebuyers, developers, lenders and investors had been ascertained that could be addressed through the unique window.

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