UP-RERA sends letters to over 1200 realtors informing about stress fund

New Delhi

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has sent letters to 1227 realtors across the state informing them about the benefit of stress fund scheme announced by central government recently.

“The step has been taken in order to ensure that the promoters of such projects are aware of the scheme so that
the projects are completed, and the home buyers of such projects are able to get their home,” said the authority in a media release.

The authority also held a meeting in November with all promoters informing them about the scheme so that they are able to apply for the last mile funds under the stress funds in time and in a proper manner.

Eligibilities which a project should meet to be able to avail the said fund:

  1. Project should be RERA registered
  2. Project is stalled due to lack of funds
  3. Project falls in affordable and middle-income group segment
  4. Project should be net worth positive
  5. Pricing of units shall not be more than Rs 1.5 crore, if the project is located in NCR region and upto or less than Rs 1 crore for rest of India
  6. Priority for projects very close to completion
  7. Carpet Area of housing units should not exceed more than 200 sq meter

The central government in November had proposed fund of Rs 25,000 crore to complete pending realty projects. Out of the total, government infused upto Rs 10,000 crore initially and the rest is to be contributed by banks, LIC and other sources.

The fund will be set up as a Category-II AIF (Alternate Investment Fund) debt fund registered with SEBI and would be professionally run. For the first AIF under the special window, SBICAP Ventures has been engaged to be the investment manager.

Source: https://realty.economictimes.indiatimes.com/news/industry/up-rera-send-letters-to-over-1200-realtors-informing-about-stress-fund/72393122