Developers’ body seeks to defer housing loans EMI for a 12months.

Real estate developers body is looking for a 12-month deferral of housing loan instalments, a 2-year moratorium on project loans, issuance of building plans and other permits that are being supported by payment of fees, and other steps to help the real estate industry in UP and Haryana.

The National Real Estate Development Council (NAREDCO-UP) has written to Finance Minister Nirmala Sitharaman urging them to support the sector in this tough period.

“Because of the impact of Covid-19, housing sales are almost zero. There are no buyers in the sector; of course, the valuation of housing prices is zero. We have requested Finance Minister for some relief package,” said Supertech Chairman RK Arora, who also serves as Naredco-UP presidents.

To address the impact of the pandemic, NAREDCO said it is important that all project loans disbursed by the banks be given unconditional 2-year moratorium during which time, no project account should be considered as NPA and no recovery action should be taken against any developer. It has also asked for the removal of all NCLT/DRT cases against the developers.

To alleviate liquidity for retail home buyers who have taken home loans but require liquidity assistance owing to a pandemic condition, the body has demanded a 12-month deferment for EMI to pay home loan instalments. Penal interest can be permitted through this time of waiver of the additional interest.

CREDAI has stated that the industry is already facing a severe shortage of construction materials owing to import constraints and the closure of state borders leading to supply chain problems and strong rise in material prices. Because of the Covid-19 virus building sites is also locked-down.

For a year starting on February 15, the entity has sought an exemption from payment of interest on external development charges and internal development charges. It has also stated that the phase of the required approvals for the construction of a project must be conducted with urgency without the requirement of Bank Guarantee(s) and other charges.