The problem of stalled projects and the subsequent rise is due to the lack of execution capabilities of developers, cash flow mismanagement and diversion of funds to buy new land banks or retire other loans. The need of the hour is an independent third-party audit services for homebuyers to empower them to make an informed decision about the developers’ capabilities to complete the project on time.”
To address the issue of stalled projects, the Government launched the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund in November 2019. Till date, the SWAMIH Fund has raised Rs15,530 crores to complete all stalled projects. However, in the last five years, only approximately 32,000 units have been completed. The Fund aims to deliver 20,000 homes every year for the next three years.
Real estate disputes in various courts have been rising. To add to this, the backlog of stalled projects and the addition of new ones have put the onus on homebuyers to do their due diligence through professional experts before buying a house.
