Mumbai construction skyline
Mumbai construction skyline

Mumbai: Amidst Coronavirus outbreak, the realty players have appealed to the Centre to provide relief to the cash strapped industry to stay afloat.

Confederation of Real Estate Developers' Associations of India (CREDAI) has called for a  relief in interest and principal repayments falling due over the next 3 months,  relaxation in special mention account criteria, waiver of penal interest, COVID 19 force majeure under Section 6 of RERA and reprieve on coercive measures for tax collection. This is necessary as the sales velocity and the receivables were hit drastically leading to default/delay in fulfilling  financial commitments and the falling stock prices have forced buyers to skip installments payable  on their purchases of real estate.

CREDAI in its representation to the Centre further said that the construction work has come to a standstill  and delays in procurement/delivery of construction material and labour disruptions will cause delay in completion of ongoing projects.

CREDAI representative told FPJ,'' The Centre needs to put off  all interest and principle repayments falling due over the next three months and recover it over the next nine months.  The penal interest charged by banks and financial institutions need to be suspended  for a period of one year or until such time as it takes for the pandemic to  abate.''  He said the Centre needs to instruct  banks and financial institutions to provide additional funds for real estate projects  to meet the enhanced cost of material and  slow pace construction work.

Further, CREDAI has urged the Centre to issue an advisory to the Real Estate Regulatory Authorities in the state  to extend the time of completion of real estate projects  and exempt the penal charges for a period of one yer. COVID-19  should be included as ''force majeure'' under section 6 of the Real Estate (Regulation & Development) Act.

Further, the realty players has appealed to the Centre that coercive measures for tax collection involving raids and surveys  without any basis be kept in abeyance for a period of three months to enable the sector to  deal with the COVID 19 crisis.

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Free Press Journal