FPCE wishes to finish stalled projects by getting Rs.10,000 crore’s stress fund in the budget.

By Abhay Shah, Realty Quarter

According to a home buyers’ body FPCE, the government in the forthcoming budget should establish an Rs.10,000 crore fund to finish stalled property projects across the nation and provide assistance for more than 5 lakh individuals who have booked homes.

Forum for People’s Collective Efforts (FPCE) previously referred to as Fight for RERA, also called that home buyers to be categorized as main secure creditors in its Budget Recommendation to the finance minister.

“You know that over five lakh home buyers whose hard-earned savings are blocked in various real estate projects all over the nation because of uncertain delay and fund diversion by developers,” FPCE President Abhay Upadhyay stated that he had pitched to create a stress fund to stop these home buyers’ mental and financial stress.

The memorandum further observed, “In spite of the RERA (realty act), most of the ongoing projects were not finished. Now, it is time to resolve this issue by setting up at least Rs 10,000 crore ‘stress fund’ to finish pan-Indian real estate projects.”

The goal should be, to finish all outstanding projects pan India in a period of five years, it said.

“This will clean-up the sector, infuse rapid development, restore faith in the sector, and with strict implementation of RERA, the chances of recurrence of such delays will be minimal,” FPCE said.

The organization said that the largest ban affecting the real estate industry is the delay in project execution. The memorandum stated that this has also become a breeding ground for insolvency trials as part of the 2016 Insolvency and Bankruptcy Code, the home buyers are classified as unsecured creditors, thereby put their life’s saving at stake.’

It thus proposed that the Insolvency and Bankruptcy Bill of 2016 be amended instantly, either through the Finance Bill or otherwise, by offering for the creation of ‘primary secured creditors’ to home buyers.