Centre seeks fix for realty pain; Swamih fund may be tapped

Committee to examine including bankrupt realty projects within the scope of an existing scheme from 2019

- 

sector's pervasive presence in the country's bankruptcy courts, according to data from the Insolvency and Bankruptcy Board of India (IBBI).

The MCA-led panel will feature representatives from the ministries of law and housing, the IBBI, the Department of Financial Services, and the National Institute of Urban Affairs (NIUA). The committee being set up by MCA is different from a panel recently set up by IBBI to explore project-wise bankruptcy resolution among real estate projects, as reported by Mint on 3 November.

"The committee will give its recommendations in six months. Formalities of setting up the committee are on and a preliminary meeting of officials from different ministries has already happened last week," said one of the persons, who requested anonymity as the talks are private. The committee is expected to be formalized shortly.

Queries emailed to the ministries of corporate affairs, law, housing and urban affairs and IBBI remained unanswered.

One of the most immediate and potentially impactful proposals the committee will examine is broadening the scope of the Special Window for Affordable and Mid-Income Housing (Swamih) Fund. Launched in 2019, the Swamih Fund aims to provide last-mile financing to stalled but financially viable affordable housing projects.