Relief For UP Builders, No Penal Interest If Lawsuit Interrupts Projects

The Uttar Pradesh government on Tuesday decided to exempt builders from paying out the penal interest and other dues for the period of their project is stalled due to lawsuit if they pass on this privilege to the home buyers.

The decision to provide a “zero period” benefit to builders was taken at a state cabinet meeting chaired by Chief Minister Yogi Adityanath.

Industrial Development Minister Satish Mahana told reporters that the benefits will exercise to builders who are ready to give houses to buyers by June 2021.

The state government assumed that 1 lakh new houses to be built by that time.

The Chief Minister of Uttar Pradesh further said that the decision was taken to protect the interest of home buyers and based on the recommendations of several committees and the UP Real Estate Regulatory Authority (UP RERA).

The builders will be exempted from paying out the penal interest and other dues if the housing projects are interrupted due to lawsuit, National Green Tribunal (NGT) decision or due to delay deed execution.

Apart from that, a zero period policy will also implement if a builder can’t begin the project due to the lack of an access road or the local body’s failure to obtain land in time.

CM Yogi Adityanath added that the state government has also decided to initiate inquiries against officials who are accountable for the delay in the handover of land to the builders.

The minister testified that during the time of the former Samajwadi Party government there was a rush among builders and officials to start housing projects, especially in the National Capital Region (NCR). As a result, it headed to a number of projects being delayed or postponed.

Sources: Google