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- Real Estate Project, Real Estate Ibc, Rera, Rera IBC, Bank Home Loan , Real Estate Home Loan
Mumbai17 minutes ago
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There is a shortage of money in the market which is a bad sign for everyone. Their confusion increases when it comes to know that there is more than one owner of that land and they have to combine them into one.
- RERA has also been implemented by every state, but even that is not getting relief.
- The falling prices of real estate have also stalled the project.
The Insolvency and Bankruptcy Code (IBC), which was brought for the benefit of home buyers 5 years ago, is still not getting any benefit. In the last 5 years only 8 cases have been approved in IBC. While thousands of home buyers are roaming homeless.
Jaypee Infratech in Supreme Court
Jaypee Infratech, one of the biggest realty companies in the country, is currently the biggest issue in realty. This is one such high-profile case that has reached the Supreme Court. In this, thousands of home buyers have been stumbling from rate to rate for 8 years. Although the government company is working in it and home buyers are seeing hope. But there are many such projects across the country whose possession is delayed for years and there seems to be no end to the hardships faced by the homebuyers in those projects.
Only 8 resolutions approved in five years
Statistics show that five years after the IBC was notified, only 8 real estate resolution plans have been approved. However, till March 2021, a total of 205 cases were accepted. This means that only 4% of the cases are getting success. This has kept the performance of the real estate sector at its worst. Such is the situation when everything is at stake for the people in this sector.
There is trouble in the realty sector
Lending institutions in other sectors drag companies to the National Company Law Tribunal (NCLT), but in the realty sector, it is very difficult to do so. Because in doing so, the lifetime deposits of those who buy or book a house are at stake. Unlike other sectors, real estate has more complexities. It’s not just IBCs, which usually have institutional creditors and suppliers.
no relief from rera
The job of RERA is to protect home buyers. Especially those who have taken home loan. Same is the case with RERA. Apart from this, new rules keep coming, which makes it difficult to follow the new guidelines. If seen, such rules and guidelines are still coming every day. It will take some time for them to be fully implemented. With this, the interests of home buyers can be properly protected. According to experts, there are many flaws in the previous laws and guidelines and they are yet to be rectified which is happening.
The job of banks to remove the problems of home loan
The first focus for banks is on how to correct the shortfall in home loans so that their profit graph can improve. Conversely, home buyers want a more trustworthy company to take over the sick company. Even if the banks have to bear a small loss.
real estate prices fell
The falling real estate prices have made matters worse and have made it very difficult to complete the stalled projects. Also, if the cost of building the project is more than the selling price of the total houses, then that project will never be a commercial success. In many cases money has been diverted and the corporate debtor (company) does not have enough money to complete the project. Such projects are hanging in the balance.
Also, there is a shortage of money in the market which is a bad sign for everyone. Their confusion increases when it is found that there is more than one owner of that land and they have to combine them into one. In such cases insolvency laws should be imposed. Because there is no provision for project or group insolvency in IBC.