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UP RERA asks developers to apply for stress fund

Central government has proposed Rs 25,000 crore stress fund out of which Government of India shall infuse up to Rs 10,000 crore and the rest shall be contributed by Banks, LIC and other sources.

, ET Bureau|
Dec 05, 2019, 08.31 PM IST
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The RERA has sent a list of FAQs and a sample letter to apply for the fund to the promoters.

The Real Estate Regulatory Authority of Uttar Pradesh has written to over 1200 developers asking them to apply for stress fund announced by the central government.

“Since quite a large number of stalled/delayed real estate projects, registered with RERA are in Uttar Pradesh in which the houses of more than a lakh home buyers are involved, UP RERA held a meeting with promoters to make them aware of the scheme,” said a UP RERA official.

Central government has proposed Rs 25,000 crore stress fund out of which Government of India shall infuse up to Rs 10,000 crore and the rest shall 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 Limited has been engaged to be the Investment Manager. Projects which are in NCLT can also apply, provided no resolution plan has been approved by the NCLT court in such projects,” the official added.

The RERA has sent a list of FAQs and a sample letter to apply for the fund to the promoters.

Some of the criteria which a project should meet to be able to avail the fund are - it should be RERA registered, is stalled due to lack of funds, it falls in affordable and middle-income group segment and should be net worth positive among others.

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