Real Estate

Radius and hundreds of other developers relied on loans from what India calls non-banking financial companies (NBFCs) to fuel a five-year property boom.

Finance Minister Nirmala Sitharaman on Saturday announced a special window of Rs 10,000 crore to boost affordable and middle-income housing. The move was announced as part of a third instalment of steps within three weeks to boost the economy, which grew at its slowest pace in six years in the first quarter of the current financial year. The government will make funding available for "net worth positive" housing projects that are not in a bankruptcy process or classified as non-performing assets (NPAs), Nirmala Sitharaman said.

Finance Minister Nirmala Sitharaman said the government would also relax external commercial borrowing guidelines for projects in the country's affordable housing scheme.

The top court cleared the modalities by which the homebuyers can be put to notice for clearing outstanding amounts.

The government is likely to increase the ambit of affordable houses from Rs 45 lakh to Rs 70 lakh, according to the report.

A majority of respondents in the August13-27 survey said risks to those already-modest predictions were skewed more to the downside.

The government could make changes to the definition of affordable housing as sought by developers so that more projects can come under the category.

The Supreme Court on Monday directed disbursement of Rs 7.16 crore to state-run National Buildings Construction Corporation (NBCC) to complete two stalled projects of the embattled real estate group Amrapali, which has been accused of fraud. The sum was earlier deposited by the Amrapali group with the top court's registry. The two projects are in Noida and Greater Noida.

The capital region, by virtue of its limited supply of luxury properties, saw a 4.4 per cent rise in weighted average of capital values.

On July 23, the top court cancelled the real estate company Amrapali Group's RERA's licence and appointed NBCC to complete all pending projects.

However, the consultant said that security concern may keep prospective property buyers at bay for now.

The major subjects discussed in the meeting included liquidity problems and completion of stalled projects.

In a major setback for property developers, the Supreme Court on Friday upheld the amendments to the Insolvency and Bankruptcy Code, granting homebuyers the status of financial creditors. The top court said the move does not infringe the rights of property developers. The Supreme Court also said homebuyers enjoy the same rights as financial creditors. It also said the Real Estate Regulation Act (RERA) should be "read harmoniously" with the amendments to the Insolvency and Bankruptcy Code, and in case of any conflict the latter will prevail.

Reserve Bank of India on Wednesday cut the repo rate by 35 basis points or 0.35 per cent to 5.40 per cent.

The top court said it will hear a plea of homebuyers along with the statutory appeal of Jaypee Group against the July 30 order of NCLAT.