[INDIA REAL ESTATE NEWS] Good morning everyone I am Rumi Dhar from Kama Group.|
Here I have important INDIA real estate news to share with you which is as mention under.
Mumbai: In all 23 States have extended the RERA deadline by six months and one by nine
months for completion of real estate projects as the government has taken steps to protect
the interests of home buyers in view of the situation created by COVID19, the PMO said.
Stressing that the homebuyers' interests will be protected in view of the delays in completion
of projects arising out of the COVID-triggered lockdowns, the Prime Minister's Office (PMO)
has assured that the issues faced by the developer community will also be looked into.
Responding to a direct petition by a Mumbai-based NGO Samachar Foundation seeking the
Prime Minister's intervention into the real estate crisis, the PMO explained that the
government has taken several measures "to ensure that projects do not get stalled due to
disruptions caused by Covid19 pandemic and flats and homes get delivered to the
homebuyers albeit with some delay."
Regarding the plea to look into demands from the real estate industry for one-time debt
restructuring, reduction of home loan interest rate to 5%, GST input tax credit, the PMO
letter, signed by Deputy Secretary Akhil Saxena, told the petitioner that "your valuable
suggestions have been noted and appropriate action will be taken."
Expressing happiness at the prompt response from the PMO within a week of filing the
petition on PM's web site, B N Kumar, director of Samachar Foundation, said that this
assurance is significant as it comes close on the heels of Finance Minister Nirmala
Sitharaman's promise that she would have "an open and fresh look" into the developers'
The petition to the PM drew his attention to developers' body CREDAI's online petition to
him and pointed out that the pandemic of Covid-19 has compounded the difficulties already
being faced by one of the key components of the economy, the real estate industry that
contributes to 7% - 8% of GDP and is the largest employment generating sector after
agriculture, generating about six crore jobs.
Pointing out that the RBI has recently indicated a negative growth forecast, the petition said
that real estate sector has all the capacity to revive the economy as close to 300 industries
depend on it.
For the revival of the real estate industry and in turn the revival of the economy, the
developers body has suggested one-time debt reconstruction, reduction of home-loan
interest to 5% (or subsidising it to bring it down to that level) to empower the buyer,
extension of RERA timeline for project completion to March 2021, GST Input Tax Credit to
be extended for new projects and raising SWAMIH fund to be increased to 1 lakh crore.
The PMO explained in its response to Samachar Foundation that due to COVID19, the work
of on-going real estate projects has halted. Large scale reverse migration of labour and huge
disruption in supply chain of material, have adversely impacted the construction work. Labour
is least likely to return before festivals in October - November get over. In such circumstances,
real estate projects will take quite some time to resume work fully. Surely this will delay
completion of projects leading to lot of litigations for non- compliance of commitments on
time and make projects fail or get stressed. Hence, in order to safeguard the interest of all
stakeholders, especially home buyers and to ensure delivery of houses, flats to them,
Ministry advised States and RERA to invoke the force majeure clause under the law, the
Read more at:https://content.magicbricks.com/property-news/industry-buzz/mumbai-industry-buzz/covid-crisis-pmo-promises-to-protect-homebuyers-interest-look-into-realtors-issues/114146.html
Have a nice day