Speaking at the key handover ceremony of the Jai Santoshi Maa Housing Society in Kandivali, where 149 families received new homes under the SRA (Slum Rehabilitation Authority) scheme, Goyal emphasized that real development is about giving every citizen a safe and dignified home, not just chasing economic growth figures.

“Builders who abandon projects, fail to pay rents to displaced slum dwellers, or deliver poor-quality homes will not be spared. They will be blacklisted, and in serious violations, they may even face jail time,” Goyal said. “At the same time, I demand action against government officers who protect or collude with such builders. The nexus of corruption must be broken if we want true progress.”

The Minister stressed that transparency must become the foundation of SRA redevelopment. He insisted that slum residents must have the right to choose their developers, without political or administrative interference. This move, he said, would ensure that redevelopment projects genuinely serve the interests of the people rather than a select few.

Highlighting the government’s larger housing mission, Goyal reaffirmed the national goal under Prime Minister Narendra Modi’s leadership:
“In the next five years, three crore families will be provided free pucca homes. Our vision for a developed, self-reliant India leaves no citizen behind.”

Goyal praised the timely completion of the Jai Santoshi Maa Housing project but made it clear that examples of good work must become the norm, not the exception. He pointed out that abandoned or delayed projects not only cause financial loss to homebuyers but rob them of years of stability and dignity.

The event was attended by MLA Yogesh Sagar, developer Rashmin Rugani, chief promoter Amit Yadav, and senior SRA official Swapna Deshpande.

In a separate but strongly worded statement, Goyal also addressed the recent terrorist attack in Pahalgam. He said that those responsible would face such severe justice that “no enemy will dare look at Bharat with evil intent again.” He criticized individuals allegedly offering shelter to anti-national elements and stated that India’s 1.4 billion citizens stand united in the fight against terrorism.

Also Read: Reduce prices to survive or suffer: Piyush Goyal to Builders

The post Builders Who Delay Projects or Deliver Poor Work Will Face Blacklisting and Imprisonment: Piyush Goyal appeared first on Square Feat India.

Goyal recounted that he bought his home in 2010, with the expectation that it would be ready for occupancy shortly after. While the property was completed in 2012, it faced significant delays, as the building did not receive its Occupation Certificate (OC) for another five years. This protracted wait exemplifies the struggles that many buyers faced in the pre-RERA (Real Estate Regulatory Authority) landscape, where regulatory oversight was lacking.

Reflecting on his experience, Goyal emphasized that the real estate market during that time operated in a “different orbit,” highlighting the need for reforms to protect homebuyers. His comments resonate with countless individuals who have encountered similar frustrations in their quest for housing.

Goyal’s story serves as a reminder of the importance of accountability in the real estate sector and the ongoing need for regulatory measures that prioritize the rights and interests of homebuyers. His experience underscores the challenges that even influential figures can face in the complex world of real estate transactions.

Also Read: At USD 2.5 Billion, Q2 2024 institutional investment in Indian real estate touches a 3-year high

The post Union Minister Piyush Goyal Shares His Struggles with Mumbai Developer appeared first on Square Feat India.

By Varun Singh

Devendra Fadnavis has promised to take up the various demands of the developer community with the centre and even assured them help.

He spoke to the builders via a webinar which was held on Tuesday and attended by over a 1,000 developers from the Mumbai Metropolitan Region.

The MMR Action Committee of CREDAI MCHI, has launched an online petition and sought close to 35,000 signatures. Fadnavis at the webinar told the developer community that their “logical, genuine and reasonable” demand for a one time debt restructuring will be taken up with the Finance Minister.

Fadnavis even tweeted the same and tagged FM Nirmala Sitharaman, who even responded to the tweet.

Fadnavis in his tweet said, “Received online petition from CREDAI-MCHI, signed by almost 35,000 developers. The real estate industry requires many interventions from State & Central Government. I have assured them to take their petition to Hon FM @nsitharaman ji ! “

To which the FM replied, “Thanks Devendra ji. Will receive the petition that you shall send. Assure you that we’ll give it a fresh and open-minded look.”

The main issues of builder community is that of restructuring of loans, pushing banks, and other financial institutions like NBFCs to pass on benefits of repo rate cuts to the consumers, input tax credit to be given under GST.

Fadnavis during the webinar even expressed his stated that banks, but for SBI, have not yet passed on the benefit of the repo rate cut to the end consumer.

According to MMR action committee spokesperson Ajay Ashar, banks are in a very comfortable position when they deal with real estate developers. “They get an ROE of 22%-25% which is the highest in the world. Banks also enjoy very high net interest margins on lending to real estate, yet the developer community gets a step-motherly treatment,” he said.

CREDAI MCHI, President Nayan Shah pointed out that nothing from the Rs 20 lakh-crore package announced by the centre benefits the real estate developers. “The economy as a whole will revive itself if real estate survives as every paisa given to the developer goes into the economy straight,” said Shah

Only last week when another developer body NAREDCO held a webinar with Union Minister Piyush Goyal he asked builders to reduce price to survive the downturn.

Also Read: Reduce prices to survive or suffer: Goyal to builders

The developer bodies have made various representations to state and central government, and are hoping that their demands are met.

Developers in the past have also asked for ready reckoner rates to be slashed and amend the Income Tax Act that penalizes seller and buyer for buying below 10 per cent of the ready reckoner rates.

Price reduction not solution, research by builder body

The post Developers take Fadnavis route to reach Central Govt appeared first on Square Feat India.

By Varun Singh

On Thursday one thing that most developers, even International Property Consultancy firms discussed aggressively was Goyal’s advice to builders.

Goyal’s advice to builders was, “Unless you reduce your rates, believe me you are stuck with your material, you can choose to be stuck with the material and default with bank and then the material goes away, or you can choose to get rid of whatever you bought at high prices, look at this as a bad decision or an unfortunate situation and move forward.”

Also Read: Reduce prices to survive or suffer: Goyal to builders

Goyal was speaking at a closed door webinar organized by builders body NAREDCO.

However, Goyal’s video of he speaking firmly to developers on government’s stand went viral on social media.

Post which there were many remarks and comments from the real estate industry.

Rajesh Prajapati, a prominent developer from Mumbai Metropolitan Region and also a member of CREDAI tweeted, “I just hope banking, steel and cement industries also invite Piyush Goyal for webinar. Maybe developers will be able to reduce prices if these industries also reduce theirs. I also hope cost of railway tickets is reduced.”

Another developer Anuj Khetan, of Vijay Khetan Group said, “Speaking of price correction, the real estate industry has already started considering the same if there are potential buyers. Developers are not turning away customers who are genuinely asking for a fair price. It is not that easy as it seems that the developers will reduce prices and inventory will fly off the shelf.”

Another developer, Hakim Lakdawala, of Goodwill Developers, said, “This announcement by the Union Minister Piyush Goyal advicing the developers to reduce property rates is only going to add to the pressure that the sector is already reeling under with high taxes, cost of production and ready reckoner rates. We hope that Government and Authorities help us re-initiate our construction activities so that we can return to normalcy by Diwali and the demand too shall pick up post the festive season.”

Even IPC have termed Goyal’s advice as valid but not viable. Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, “At some level, the suggestion by the minister to developers to lower prices is valid as it may help reducing inventory, though it may not be the most viable.”

Baijal further added, “The crux of the problem lies in dwindling demand that the sector has been experiencing for last few years. Therefore, the main solution will be in creating stable long-term demand by providing adequate boost to economic growth and stability.”

Most developers are expecting concrete solutions from the government. They are hoping that government will reduce ready reckoner rates, provide them with GST waiver on under construction home sales.

According to Baijal, any movement on ready reckoner rates, stamp duties and taxes will come as a further relief to help converting latent housing demand to sales. The real estate sector thus needs tangible measures to resurrect demand and ease the concerns for all stakeholders in the sector.”

Even Khetan said, “The industry’s expectation from the Government is to allow REITS and Foreign Institutions to invest in OC ready apartments which will eventually drive housing demand.”

Also Read: Lodha sells more than 1000 homes during lockdown

The post Goyal’s ‘reduce price’ advice doesn’t go down well appeared first on Square Feat India.

By Varun Singh

Piyush Goyal, Union minister who holds vital portfolios in the Modi government asked developers to reduce prices to survive. Builders meanwhile, want government to make laws that shall not further tax them or home buyer for selling and buying at lower prices.

Why is this statement important in the current times, because Goyal may not be the first to ask so, but he probably is the first minister to explicitly tell developers that they should reduce prices.

According to sources it was a closed door webinar, but a video of the minister asking developers to reduce prices surfaced on social media. Some even tweeted the video and it was making rounds on the social messaging apps.

During the webinar with developers body NAREDCO, Goyal, said, “Unless you reduce your rates, believe me you are stuck with your material, you can choose to be stuck with the material and default with bank and then the material goes away, or you can choose to get rid of whatever you bought at high prices, look at this as a bad decision or an unfortunate situation and move forward.”

Goyal was to the point with his remarks, he further told the developer community that things are seriously stressed and builders best bet is to sell.

“If any of you here feels that government will be able to finance in such a way that you can hold longer and wait for the market to improve, market is not improving in a hurry, things are seriously stressed and your best bet is sell,” said Goyal.

He also advised builders to get rid of bank loans. Goyal said, “Those who have sold, leveraged less or got rid of their bank loans have survived this downturn, those who are saddled with large loans, who kept holding on to their price have suffered. My conscience is clear, because in every interaction of mine, I have said this point.”

According to Dr Niranjan Hiranandani, President, NAREDCO, the government should change laws, which penalizes the seller and buyer when they sell or buy at less than ready reckoner rates.

“The moment we sell at a price that is 10 per cent lower than the ready reckoner rate, both the seller and the buyer are penalized under Income Tax Act. The government should either reduce the ready reckoner rates or amend the Income Tax Act,” said Hiranandani.

Actually Hiranandani does have a point. To explain this further, Sumeet Mehta, Chartered Accountant and CEO, Paradigm Advisors said, “As per Section 43CA of Income Tax Act, 1961, if any developer sells his inventory at a discount of more than 10 per cent of the ready reckoner valuation of the said property, then the developer will have to pay tax on the discount allowed. This is because the law states that in such situations when the sale price is lower than ready reckoner price by more than 10%, then the ready reckoner price must be considered to be the sale price and tax paid on the said notional value.”

According to Mehta, if that is not enough, the Government has made the same difference between the sale price (here purchase price in the hands of buyers) and ready reckoner price, taxable as income in the hands of the buyer under Section 56 (2)(x) of Income Tax Act, 1961.

“This results in double taxation of the same amount, first time in hands of developer as a tax on notional income, and then in hands of buyer as tax on discount earned presumed to be an income,” said Mehta.

Many builders claim that such populous statement are made very often these days, but without any concrete action from the government side, nothing will help the realty sector.

“I am ready to sell at a lower price, but without financial assistance to the sector will there be a buyer? If the government doesn’t reduce home loan interest, doesn’t give some waiver in GST and stamp duty, why would anyone come to buy in such a market, where are the customers? Assistance is required in uplifting the customer sentiments to at least get them to the table for negotiations,” said a developer who didn’t wish to be named.

Also Read: Price reduction not solution, research by builder body

The post Reduce prices to survive or suffer: Goyal to builders appeared first on Square Feat India.