Status as on- 30/08/2020
The government sponsored and SBICAP Ventures managed SWAMIH Investment Fund I has cleared the investments worth over ₹10,000 crore for 101 proposals benefiting about 71,000 home buyers across the cities. This comes as a major relief to the homebuyers of the stuck projects.
The central government formed a Rs 25,000 crore Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects Investment Fund popularly known as the SWAMIH Fund. The SWAMIH Investment Fund was formed to complete construction of stalled, brownfield, RERA registered residential developments which are in the affordable housing / middle-income category and require last mile funding to complete construction.
The Investment Manager of the Fund is SBICAP Ventures Ltd. Recently, SBICAP Ventures has cleared applications from realty developers for stressed real estate projects investment worth over Rs 10,000 crore. The move will benefit around 71,000 homebuyers across various cities.
Purpose behind formation of SWAMIH
According to government estimates, there are 4.58 lakh shackled housing units in 1,509 residential projects that are stuck across the country. The Rs 12,500 crore fund, with green-shoe option of additional Rs 12,500 crore, aims to provide financial support to enable completion of those projects and ensure delivery of apartments to disgruntled homebuyers.
So far, SWAMIHI has approved Rs 8,767 crore for 81 stressed residential projects. These projects are spread across Delhi NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Chennai, Pune and also tier-II locations including Nagpur, Jaipur, Nashik, Vizag, Chandigarh, Karnal, Panipat, Lucknow, Surat, Dehradun, and Kota among others.
Thus, the above-mentioned step by the government is highly appreciable in terms of protection of homebuyer’s interest and to prevent the stalled real estate projects to blemish. The ongoing crisis due to Covid-19 may result in delay of more projects due to liquidity crunch. Therefore, the move will comfort disgruntled homebuyers restore the faith to invest in the real estate industry.
Disclaimer- The above article is based on the interpretation of the related laws and judicial pronouncements. The readers are expected to take legal advice before relying on this article. The author can be reached at firstname.lastname@example.org or call the IP expert at 8383011629