Developers demand restructuring of loans, waiver of stamp duty


Developers in NCR have requested for one time restructuring of mortgage and delay the EMI for one 12 months in order that they will pay to the development employees.
According to the National Real Estate Development Council (NAREDCO), most of the builders are going through extreme liquidity crunch and are unable to pay for salaries.

“We have raised the matter on several platforms but nothing concrete has happened. Developers do not have the money to pay salaries if liquidity issue is not resolved. We are not getting loans since restructuring has not been done. After restructuring, the EMI should start a year later, since we are not going to get any money from sale,” mentioned RK Arora, President of NAREDCO–UP.

The Real Estate affiliation has additionally sought reduction from the UP authorities for waiver of stamp duty for a 12 months, waiver of curiosity on land dues payable to the event authorities on the allotted plots, for 2 years, discount in rate of interest payable on land dues par with present Repo Rate.

Developers have additionally requested for permitting subventions scheme.

“Currently the bulk of buyers are basically end users. Most of them stay in rented accommodation till they get possession of their dream homes. Under subvention scheme of builders, which was a practice till not so long ago, buyers will not be burdened with EMIs till possession was offered. As such, the scheme was a big motivator for end-users. If allowed, the scheme will help the sector immensely,” mentioned Sagar Saxena, Project Head, Spectrum Metro.

“Subvention scheme was a big draw among buyers as they would feel the pinch of EMIs till possession. Till about a year and half ago, when the scheme was banned, a majority of buyers use to opt for it. As the current pandemic is a crisis of a life time, government should allow subvention scheme for next few months. This will help the sector to regain some of its lost ground,” mentioned Dhiraj Jain, Director, Mahagun Group.

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