UP unveils zero period policy to stalled projects

The Uttar Pradesh government is contemplating considering re-introducing the Zero Period policy to deal with stuck realty projects in the state. Zero Period policy stipulates that if a project was stalled due to a stay order from any court or the National Green Tribunal (NGT), or the state RERA, delaying possession of deed execution, or the land was not acquired by the authority at the time of handover, or in case actual construction on site could not be started by the developer due to absence of approach road, then the affected period may be declared as a zero period. Developers, in such cases, are exempted from penal interest and dues, albeit with some conditions. There are 74 projects where the government can provide relief. Over 95,400 flats are stuck in these projects, of which 65,670 have been sold. To complete these units, close to ₹11,000 crore would be required and the future receivables from these projects is around ₹29,400 crore. Of the 74 projects, 80% construction has been carried out in 20 to 60% (in 18 projects) and 36 projects have less than 60% work done. According to UP RERA member Balwinder Kumar, the Zero Period policy was recommended by the Uttar Pradesh group of ministers (GoM) in 2017 and also by the high level committee under the chairmanship of ministry of housing and urban affairs (MoHUA) secretary DS Mishra, a year later.