LUCKNOW: Noticing the rising trend of private builders filing claims of insolvency and bankruptcy, the Uttar Pradesh government is planning to set up a high-level committee soon to find out the common reasons behind such move.
Chief Minister Yogi Adityanath has ordered the Industrial Development Department to set up the panel with the mandate to look into the conditions which are compelling private builders to file for bankruptcy, leaving thousands of homebuyers in the lurch.
In fact, since Yogi cabinet 2.0 assumed charge, two prominent builders — Supertech Limited and Logix Citys — have filed for bankruptcy before the National Company Law Tribunal (NCLT). Earlier, Wave real estate group had filed for bankruptcy in March 2021. Prior to this, several big names of the real estate industry such as Amrapali, Jaypee Group, 3C Homes, Unitech and Sahara have faced insolvency proceedings in the past.
“Things are not streamlined. Uncertainty looms large even after the establishment of Real Estate Regulatory Authority. Why the developers are declaring themselves bankrupt needs to be probed,” said an officer. RERA came into force in UP on May 1, 2017.
A number of well-known firms declared themselves bankrupt, urging the NCLT to liquidate their assets so that they could arrange funds and deliver the incomplete projects. Buyers have been a harried lot due to non-deliverance of housing units despite making payments.
In the NCR, especially Noida and Greater Noida, scores of homebuyers have no clarity as to when will they get the possession of their flats booked under various projects of these builders. A majority of housing projects, launched during 2009-2014, remain incomplete.