[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.
The real estate regulatory authority (RERA) has requested the Reserve Bank of India (RBI) to
allow developers’ business loans to be restructured to help the sector, which is going through a
severe crisis amid the economic slump due to the Covid-19 pandemic.
A majority of the around 600 promoters operating in Noida, Greater Noida and Yamuna Expressway
are facing a liquidity crisis and are thus unable to deliver flats to homebuyers, the authority said in
a letter to RBI.
The RERA sent the letter in August after it realised that work on most of the realty projects had been
disrupted due to fund crunch, affecting the interest of homebuyers.
In Noida, Greater Noida and Yamuna Expressway alone, there are at least 600 ongoing realty projects,
in which thousands of homebuyers have invested at least R50,000 crore, said an estimate made by the
“The financial institutions are reluctant in providing last-mile funding to promoters. As a result, most ongoing
realty projects are facing problems and are in dire need of funding to finish and deliver. Therefore, we suggested
to RBI to ask banks to restructure the existing loans so that promoters start getting funds to spend on construction
and the sector is revived. We hope for a positive outcome on this,” said Rajive Kumar, chairman of UPRERA.
The RERA said the restructure will allow borrowers (promoters) to get relaxations in payment time, reduced monthly
instalments, change in interest rate and an opportunity to borrow more, among other benefits.
The developers’ groups -- the national real estate development corporation (NAREDCO) and the confederation of
real estate developers association of India -- have been demanding restructuring of loans for a long time, a move they
say can help deliver many stuck projects in Noida, Greater Noida and Yamuna Expressway areas.
“The banks and non-banking financial companies (NBFC) have completely stopped giving new loans and are not keen to
offer last-mile funding, which was earlier easier to get to deliver projects on an advanced delivery stage. Fund crisis was
already there before Covid pandemic. But now without banks’ support, it is not easy to handle the crisis,” said RK Arora,
president of Uttar Pradesh NAREDCO, which has written to the ministry of finance.
Read more at: https://www.hindustantimes.com/cities/restructure-developers-business-loans-to-revive-realty-sector-rera-to-rbi/story-GhfZ5eshkypCgbCaizGuJN.html
Have a nice day