Insolvency: Builders seek government protection | News from Noida



NOIDA: Builder Naredco’s body urged central government to take immediate action to prevent the National Company Law Tribunal (NCLT) from admitting insolvency cases against builders for at least a year, citing delays charged to Covid in the completion of ongoing projects.
During last year’s lockout, the Union government relaxed the insolvency and bankruptcy code to protect builders from insolvency proceedings for six months. NCR currently has around 3.96 apartments under construction, of which Noida, Greater Noida and Ghaziabad share more than two lakh.
“We expressed our operational difficulties in a letter addressed to the Union Minister of Finance. We have emphasized that operations at all levels are more or less suspended as the government offices from which various approvals and authorizations must be obtained are operating with a very small staff, ”RK Arora, president of Naredco (Uttar Pradesh). Tuesday.
While construction work at several project sites has resumed since June of last year, the builders in their letter mentioned that the speed of work has been hampered by “a disrupted supply chain that has delayed their schedules. construction of more than six months ”.
“In addition, the offices of the developers and others associated with the projects are also closed due to the lockdown and many employees have turned positive for Covid. The interruption of construction also put the developers in a situation of serious liquidity crisis, ”said Arora.
“New bookings have been affected, so we have asked the Ministry of Finance and Union Affairs to step in and re-introduce special measures to prevent legal persons from being drawn into insolvency by suspending the applicability of Articles 7, 9 and 10 of IBC for a period of one year, ”he added.
According to a recent study conducted by real estate consultants Anarock, a total of 5.66 lakh units have been launched in Delhi-NCR from 2013 to date. Of these, 70% or some 3.96 lakh units are still under construction. “Of the total number of units under construction in the NCR, Grand Noida has the highest number at around 1.12 lakh units, closely followed by Gurgaon with almost 1.09 lakh units, Ghaziabad with over 58 500 units and Noida with 42,500 units, ”said Prashant Thakur. Anarock.
Buyers reacted strongly to Naredco’s letter, however. “It’s not our fault the builders couldn’t keep the ongoing workflow going because unlike last year, neither factories nor construction activities have been shut down by the government this year. Said Abhishek Kumar, president of Noida Extension Flat Owners Welfare Association.



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