Noida, May 21: There is no shortage of stalled real estate projects and stuck home buyers in the country. If one delves into the root causes, lack of funds will emerge as the most significant hurdle in 90% of these projects. But these projects are financially viable and if funds are made readily available, all such projects would be re-capitalized and could be successfully completed. Consequently, through the combined efforts of both government and private institutions, these stalled projects are now being brought to fruition, finally enabling home buyers who have been stuck in limbo for years to take possession of their homes.
Government Initiatives:
To address this issue, the Central Government established the SWAMIH (Special Window for Affordable and Mid-Income Housing) Fund of Rs. 25,000 Cr. in 2019. According to government statistics, over the past six and half years, this fund has facilitated the completion of more than 61,000 housing units across approximately 150 projects nationwide, thereby unlocking capital worth nearly Rs. 38,000 Cr. In light of this success, the 2026 budget has approved SWAMIH Fund 2.0 with an allocation of Rs. 15,000 Cr., aiming to facilitate the completion of another 100,000 homes.
According to Dinesh Gupta, President of CREDAI Western UP, the lack of funds has historically been the single greatest impediment to the completion of stalled real estate projects. Government initiatives like SWAMIH along with the participation of Alternative Investment Funds (AIFs) have demonstrated a viable path to transforming this crisis into an opportunity. If timely and accessible financing is made available, the majority of stalled projects could not only be completed but also help restore confidence in the sector, thereby bringing relief to millions of home buyers.
In Greater Noida West, stalled due to NCLT proceedings, the KVD Wind Park is currently being completed by ReaRCo (Real Estate Asset Resolution Company Pvt. Ltd.), a process supported by a contribution of Rs. 195.50 Cr. from the SWAMIH Fund. According to MD Gitanjali Khanna, the Wind Park project was first successfully resolved through the NCLT (National Company Law Tribunal) process, after which construction work commenced. With the assistance of the SWAMIH Fund, approximately 400 existing buyers are set to receive their long awaited homes, while the construction of an additional 250 new units will also be made possible in under-construction 5 towers.
Another stalled project, Antriksh Valley, being completed by Diligent Builders Pvt. Ltd., has received Rs. 115 Cr. from the SWAMIH Fund to meet the shortage of funds to deliver the entire project. Lt. Col. Ashwani Nagpal (Retd.), COO, Diligent Builders mentioned that shortage of funds remains the single biggest hurdle for the unfinished project. Currently, out of the two towers comprising 316 units, one has already received its Occupancy Certificate (OC), while the construction of the second tower is being expedited with the assistance of the SWAMIH Fund. Not only this, we have paid all dues to make it a registration ready project for the home buyers.
Beyond these, other housing project marching towards its target with help of SWAMIH Fund includes Capital Group’s Capital Athena, NCR Group’s Monarch and Panchsheel Group’s Panchsheel Greens as one of the early projects in the Gautam Buddh Nagar. More projects include Sikka’s Kaamya Greens, Mangalya’s Novena Greens, Skytech’s Colours Avenue, Future World’s Rhythm County and Future Estate, etc.
Private Funds & Initiatives:
Alongside government initiatives, private institutions are also stepping in to complete stalled projects by investing through Alternative Investment Funds (AIFs). Prior to investing, a thorough assessment is conducted regarding the land, legal status, outstanding dues, remaining payments, and market demand; this process aims to minimize liabilities associated with the project, thereby making it a viable investment opportunity.
Renox Group, for instance, has revived the land bank of a stalled project in Greater Noida West, brought fresh new project, ‘Renox Thrive’. Chairman of the group Shailendra Sharma, explained that to transform the land bank of a completely stalled project into a viable new venture, they first completed acquisition of the parent company and then cleared outstanding dues owed to the development authority, regulatory, banks, and homebuyers (allottees); only after settling these liabilities could the new project, comprising 400 units, be successfully launched. In this context, the easy availability of alternative funding sources holds the potential to rescue numerous other stalled projects.
Himanshu Garg, Director of the RG Group, states: “Through the ‘Reverse Insolvency’ mechanism facilitated by the NCLT, we successfully completed over 1,900 units at ‘RG Luxury Homes’ in Greater Noida West. This endeavor was executed under the supervision of an Interim Resolution Professional (IRP) and was supported by funds secured from a non-banking financial institution (NBFI). The process for the possession and registration of these units is currently underway.”
Many private institutions are infusing funds to stalled real estate projects and pushing them towards completion. In fact, private institutions have saved few projects from heavy debtors and NCLT proceedings too.
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