PHD Chamber suggested all under-construction projects to be treated as assets for granting credit to the developers.

PHD Chamber of Commerce and Industry (PHDCCI) has suggested that ongoing projects must be treated as assets for providing credit to developers, zero- period interest waiver in Uttar Pradesh should be provided for two years amid COVID-19, and developers who have applied for partial or partial project competition must be issued completion certificates to prevent financial stuck during Coronavirus. It also proposed a stimulus of at least 5 per cent of GDP that is about Rs 11 lakh crore to overcome COVID-19’s adverse effects.

The industry body has recommended that the stamp duty and registration fees will be reduced/waived off on completed flats for a period of about 1 year. It has proposed taking down the enhanced interest deduction on homeownership this year. For example, interest deduction maybe 200 per cent of interest paid for the first year, preceded by deduction of 175 per cent of interest paid for the second year, deduction of 150 per cent of interest paid for the third year and so on.

“The government should release major funds and resources for ongoing development projects, and provide financing to complete stalled housing projects,” said D K Aggarwal, PHDCCI president.

Interest relief would be given to every home buyer in the form of a 0 per cent loan. In addition, there are suggestions for a moratorium on principal repayment and absolute waiver of interest on six-month borrowing from March 2020 to Sept 2020 to facilitate the real estate market.

“Deferment of loan installments up to March 2021 by turning a one-year moratorium into a five-year term loan without impacting account classification and credit rating is important for the real estate market,” Aggarwal said.

PHD Chamber has suggested that there would be no immediate default reporting, such as SMA 0/1/2/3, NPA, RBI default until Sept 2020. To ensure ease of payment, minimum statutory enforcement for direct and indirect taxes is required. During FY 2020-21 no reopening of old cases should occur of direct and indirect taxes.

Specifically, no cases will be reopened for AY 2013-14, period limits on 31.03.2020 and FY extension granted are to provide taxpayers with relief.

“We suggest expanding new facilities, flat @30 per cent of existing facilities, as Working Capital Demand Loan, with a 6-month moratorium and 36-month repayment on existing security, to address cash flow mismatch. We also call on the government to implement fresh liquidity of at least 20 per cent of the loan sizes on a case-to-case basis,” Aggarwal stated.

The government utilizing labour cess funds raised from developers should bear the minimum wages of the building workers, during the COVID-19 crisis, stated PHD Chambers.