Stuck in a stalled housing project? How SWAMIH Fund-2 can help

The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund was launched in November 2019 as a government-backed initiative to provide last-mile financing to stalled housing projects, with financial support from the Department of Economic Affairs, Ministry of Finance.Homebuyers do not apply to SWAMIH directly. The fund operates at the project level, and applications are made by the developer or, in applicable cases, through the relevant legal proceedings. Homebuyers whose projects meet the eligibility criteria above may pursue the matter through their builder or Residents' Welfare Association.Which projects are eligible?According to a PIB backgrounder on SWAMIH, a project must meet all of the following conditions:1. Stalled due to lack of funds, not because of fraud or other legal violations2. RERA-registered, the project must be registered under the Real Estate Regulatory Authority3. Affordable or mid-income housing: Units must not exceed 200 sqm carpet area, and must be priced below Rs 2 crore in the Mumbai Metropolitan Region; below Rs 1.5 crore in NCR, Chennai, Kolkata, Pune, Hyderabad, Bengaluru and Ahmedabad; and below Rs 1 crore in the rest of India4.

Net worth positive: the value of receivables and unsold inventory must exceed the project's completion cost and outstanding liabilities5. Nearing completion: priority is given to projects in advanced stages of constructionSWAMIH Fund-2: The next phaseAnnounced in Budget 2025-26, SWAMIH Fund-2 will be established as a blended finance facility with contributions from the government, banks, and private investors. With a corpus of Rs 15,000 crore, it aims to complete an additional 1 lakh stalled housing units.“SWAMIH Fund-2 will be established as a blended finance facility with contributions from the government, banks and private investors. This fund of ₹15,000 crore will aim for expeditious completion of another one lakh units.” – Finance minister Nirmala Sitharaman, Union Budget speech, 1 February 2025.Sitharaman confirmed the rollout is under way, according to The Economic Times.What has SWAMIH achieved so far?The fund's portfolio comprises more than 145 projects across 30 cities, making it the largest residential-focused stress resolution platform in the country. Approximately 61,000 homes have been delivered across 110 projects, including over 7,000 units under the rehabilitation and Economically Weaker Sections category. The fund has generated over 36,000 jobs and contributed an estimated Rs 6,900 crore or more in GST, government dues, and stamp duty revenues to the Centre and States.

Of approximately Rs 7,000 crore invested by the Government of India, about Rs 3,500 crore has already been recovered and returned.