Builders wants government to defer housing loan EMIs for 12 months in wake of Corona Virus.
By Varun Singh
Builders have recommended a several measures to the government to be taken for the real estate industry to tackle the corona virus scare.
The nation is going through a tough phase, the reason being a shut down or lock down situation because of the corona virus. Amidst this builders body has asked the government to defer EMIs on housing loans by 12 months.
On Thursday night, even the Prime Minister Narendra Modi asked the nation to follow a Janta Curfew, where he requested that all people stay indoors on Sunday. The Janta Curfew will begin at 7 am and will last till 9 pm on March 22.
The Prime Minister in his speech even mentioned about the formation of special central committee – Govt’s COVID economic response task force under the able leadership of Union Minister of Finance.
This task force is expected to open doors for discussions on economic challenges faced by several industries.
Nayan Shah, President, CREDAI-MCHI says, “Given the current situation where daily wage workers are already struggling for their livelihood, we hope that the designated task force takes prompt and decisive decisions to guide the economy towards its revival. It is also imperative that it includes representatives from all key stakeholders in order to be able to adequately support businesses across different industries.”
The builders body has also have a lot that it has asked from the government.
Shah said, “We hope the newly formed taskforce will look into suspending all financial obligations including payment for premium to the MCGM/Special planning authority/ Government for 1 year. CREDAI MCHI also strongly believes that all premiums payable to the MCGM, SPAs and State Government should be reduced by 75% for a period of 5 years.”
MCHI has also asked that all EMIs due and payable by all residential home buyers as well as the EMIs, interest, principal due from developers should be deferred for a period of 12 months. Other recommendations include 0% stamp duty for 6 months and abating property tax for a period of 1 year.
Builders are expecting a major impact of Corona Virus on the Indian real estate sector.
Ashok Mohanani, Chairman EKTA World and Vice President, NAREDCO Maharashtra said, “It is a very inopportune time due to the novel corona virus, there has been a set back across industries globally and nationally. The momentum in the housing market, which began to show some potential over the past few quarters, would likely slow-down in the first half of 2020. There is definitely a fall in the site visits by potential home buyers. This, in turn, will have a cascading effect for sales of property. This season may see a decreased velocity in sales due to host of factors including the restrictions imposed on citizens.”
