The government's SWAMIH Fund aims to deliver 20,000 stalled homes each year for the next three years, offering hope to countless families with incomplete projects. The Economic Survey 2023-24 highlights the massive issue of stalled real estate projects in India, with an estimated 4.1 lakh homes valued at INR 4.1 lakh crore currently on hold. Launched in 2019, the SWAMIH Fund has already delivered over 32,000 homes. This government initiative provides financing to complete unfinished housing projects, including those under insolvency. With a focus on strengthening the NCLT and streamlining the IBC process, the SWAMIH Fund's commitment brings renewed optimism to homebuyers awaiting their dream homes.
The government's SWAMIH Fund is aiming to deliver 20,000 stalled homes every year for the next three years. This initiative offers a glimmer of hope for lakhs of families stuck with incomplete projects.
The Economic Survey 2023-24 highlights the significant challenge of stalled real estate projects in India. According to the Indian Banks Association (IBA), an estimated 4.1 lakh homes, with a value of INR 4.1 lakh crore, are currently stalled. Prior to 2016, homebuyers in such situations had limited options, often resorting to lengthy consumer forum processes.
Launched in 2019, the SWAMIH Fund is a government initiative aimed at reviving these stalled projects. It acts as a professionally managed investment fund that provides financing for the completion of unfinished housing projects. This includes projects facing insolvency and those under corporate debtors.
As of April 2024, the SWAMIH Fund has already delivered over 32,000 homes. The Economic Survey also highlights successful resolutions achieved through the Insolvency and Bankruptcy Code (IBC) process. Examples include Value Infracon, where creditors received almost double their claim value, and Ashiana Landcraft and Anudan Properties, which yielded over 2.5 times the liquidation value of assets.
The government's focus on strengthening the National Company Law Tribunal (NCLT) and streamlining the IBC process is expected to further aid in resolving stressed projects. With the SWAMIH Fund's commitment to deliver 20,000 homes annually, there's renewed hope for many homebuyers who have been waiting for years to see their dream homes completed.
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