Jaypee Infratech, Amrapali & Unitech may not be eligible for the FM’s Rs 25,000 crore stress fund.

Over 75,000 homebuyers of Amrapali, Jaypee Infratech and Unitech will not be eligible for support from Rs 25,000 crore stress funds in the National Capital Region, because of numerous conditions applied by the government under the scheme, said homebuyers and industry players.

“Maybe these three players are not qualified, but the property sector is beyond these three. Also if we exclude ventures under these three firms, there will be benefits for two lakh home-buyers”, said Gaurav Gupta, joint secretary of the NCR chapter of the Confederation of Real Estate Developers’ Association of India.
Though about 35,000 Amrapali customers intend to file a petition before the Supreme Court, in order to make the buyers eligible for the funding, while asking about this, majority of homebuyers of Jaypee and Unitech told that they haven’t taken a call on the next step.

The Ministry of Finance had explained that the Fund would not be spent on the projects that are going through litigation in the high court and Supreme Court. The NCR also does not apply for houses that cost more than Rs 1.5 crore. “The next hearing will take place on December 2, when we intend to appeal the court to direct the government or pass an order to allow our apartments to receive funding,” said Amrapali homebuyer Abhishek Kumar.

Amrapali projects had been de-registered by the SC. In accordance with the directives of the finance ministry, funding would only be eligible for those projects registered with real estate regulatory bodies.

“This special window will concentrate on the projects halted due to the lack of funding. It also explores projects that are NPAs or are facing NCLT proceedings that can start construction immediately following the availability of funds,” said the ministry.

In the last hearing, Dipanker, another homebuyer at one of the Amrapali projects in Noida, requested the SC to also consider disbursement of the stressed fund. Due to the price limit of Rs 1.5 crore, a majority of 20,000 homebuyers of the Jaypee’s projects would not be qualified. Yet they feel it could be done by the NBCC, which was asked to complete the projects. “Jaypee ventures are financially viable because their asset value exceeds liability. So, the stress fund is not needed by them, “Ajay Kaul, a homebuyer of Jaypee said.