Bankrupt Companies Could Help Country’s Low-Cost Housing Goals
Bankrupt companies unused industrial land could help achieve the country’s low-cost housing goals if state governments agree. If affordable housing projects are built on such land, it will not only fetch higher valuation for lenders seeking to recover their loans but also support the weaker sections of society by providing them with shelter. An industrial land is not allowed to be developed for residential housing.
Liquidated companies LML, the motorcycle maker, and picture tube manufacturer Samtel Color have 140 acres of land in Kanpur and Ghaziabad, while real estate group Amrapali holds 25 acres in the National Capital Region. In the case of Amrapali, the Supreme Court has asked the developer to submit a plan to deliver apartments to all homebuyers.
Founder of AAA Insolvency Professionals, who is the resolution professional-cum-liquidator for LML and Samtel said, the government will also meet its target of affordable housing. Even the workers can be offered a home partly against their claim of wages in these companies. The government is targeting “Housing for All” by 2022.
LML owns 70 acres of Panki Industrial Estate in Kanpur, while Samtel holds a similar area at Chhapraula, about 8 km from the industrial town of Ghaziabad. If the authorities allow low-cost housing in those lands, which are well-connected places with workplaces and good commutability, developers will surely show interest said the chief executive officer of Indiabulls Housing Finance.
If state governments allow such a move for giving shelter, it will increase marketability, fetching higher prices, said the founder of Elite Insolvency. Such a move will bring liquidity for lenders, whose money is at stake. Also, it will have a positive social impact in terms of giving shelters to the homeless.
Source Link- https://economictimes.indiatimes.com/.