Consumer activism, court interferences and stalled projects, some
builders are adopting out-of the-box strategies to find ways to
bring projects back to life.
Builder Amrapali In Noida, is tying up with third-party
contractors to complete part-built towers in many of its projects
where work had been stalled due to a cash crunch and litigation.
In this deal, a contractor would take up 4-5 towers in a group
and put upfront money of his own to revive the work and take it
to a stage where construction-linked customer payments can be
sought.Once the project Complete,Contractor will get a share of
builders profits apart from their fees .
In Bengaluru, for instance, Essar Group’s real estate arm Equinox
recently sold an 8-acre under-construction project in Hebbal —
called Water’s Edge — to local developer SNN Builders for Rs 490
crore. This also included all customer liabilities. SNN has now
taken over the responsibility of finishing and delivering the
project with a revised timeline.
Another model being used by builders is to bring in a joint
venture partner midway to bring in liquidity.