By Kailash Babar
Copyright indiatimes
The Supreme Court’s call for a revival fund to support stressed residential projects under insolvency is expected to mark a turning point for India’s housing cycle, potentially unlocking lakhs of crore worth of stuck supply and restoring confidence among home buyers.The aftermath of the NBFC crisis, pandemic-induced disruptions, and subsequent regulatory realignments has left over five lakh housing units stalled across India’s leading cities, showed industry estimates.These projects, spread across both metro and non-metro markets, represent one of the biggest bottlenecks in the country’s residential real estate cycle, locking up capital worth several lakh crore and keeping buyers waiting for years.The apex court, while stressing that housing is a facet of the Fundamental Right to Life under Article 21, urged the government to create a financing window that can rescue viable but stalled projects.“The apex court’s push for a revival fund signals recognition that housing projects cannot be left stranded indefinitely. What developers need is not just capital, but a structured framework that ensures projects get back on track quickly. Such a mechanism would help us restart construction, reassure buyers, and gradually restore normal cash flows into the system,” said Chintan Sheth, CMD, Sheth Realty.Live EventsIndustry observers point out that a revival fund can provide the bridge financing needed to complete construction, deliver homes and unlock cash flows, instead of pushing projects into liquidation under the Insolvency and Bankruptcy Code (IBC).“A dedicated revival fund, if designed on the scale suggested by the Supreme Court, has the potential to change the stressed housing landscape. From an investor’s perspective, converting non-performing projects into completed, revenue-generating assets reduces systemic risk, improves recovery, and creates a multiplier effect across the economy,” said Sanjay Daga, MD & CEO, Anex Advisory that is working on a few stuck projects’ revival process.According to him, homebuyers will also be relieved with expected clarity on completion owing to the secured financing for the project.The proposed fund, the judges suggested, could be placed under the National Asset Reconstruction Company (NARCL) or by expanding the Special Window for Affordable and Mid-Income Housing (SWAMIH).The SWAMIH fund, launched in 2019 with a Rs 15,000-crore corpus, has sanctioned financing for over 120 projects covering close to 90,000 homes across the country. Of these, more than 50,000 homes have already been delivered.SWAMIH has already shown proof of concept by unlocking thousands of homes, and the Supreme Court’s suggestion builds on this success by pointing towards a larger financing mechanism that can address the full scale of India’s stuck housing market and widen the rescue net.For developers, the proposed fund could provide a lifeline to salvage projects if they comply with escrow and audit mechanisms. For lenders, it reduces the risk of steep haircuts by converting dead assets into completed housing stock. For home buyers, it offers a realistic chance of delivery after years of uncertainty.“Completion is the only resolution that makes sense in housing. A structured revival fund, backed by strict monitoring, can convert stressed projects into performing assets,” said a senior consultant tracking the sector.Such a move could also trigger a virtuous cycle as delivered homes restore buyer confidence, boost fresh bookings, improve cash flows for developers, and strengthen banks’ real estate exposure. A large-scale revival would generate employment across construction and allied industries, while unfreezing locked capital in the economy.While operational contours remain to be worked out, the Supreme Court’s message is clear; stalled housing is not just a commercial dispute but a fundamental policy challenge. If implemented effectively, a revival fund could be the catalyst to set India’s housing cycle firmly back on track.Add as a Reliable and Trusted News Source Add Now!
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