NAREDCO has sought relief measures for the builders amid pandemic
On Wednesday, the real estate body, NAREDCO declared that it has requested the Chief Minister of Uttar Pradesh, Yogi Adityanath to provide relief measures to the real estate developers amid the CoronaVirus pandemic. They asked for an 18-month interest-free period for all the builders so that they can clear the lease rent, outstanding land dues, and other payments.
For the smooth completion of projects, The National Real Estate Development Council (NAREDCO) has also asked for the extension of the time period along with other relief measures in order to hand over the possession of flats to the homebuyers.
In his letter to CM Yogi Adityanath, R K Arora, the Chairman of NAREDCO UP said that the real estate industry has been neglected and is a victim of all bad situations, in spite of its capabilities and vast potential to support the economy.
Construction at the real estate projects has always been the casualty for master plan issues, environmental issues, labor exodus, legal issues, and groundwater issues, and now COVID-19. Due to this, many projects are being delayed which is causing defaulted land payments, liquidity crisis, and of course, cost escalation.
As there is a significant delay in the completion of the real estate projects, homebuyers have started feeling agitated. A large number of complaints are being received on consumer forums, RERA, and civil courts. This is causing developers to pay heavy fines.
While treating the CoronaVirus pandemic as ‘ National Natural Calamity’, NAREDCO UP asked the Chief Minister to allow relief to the real estate sector by issuing directions to the industrial development authorities.
The demands include an 18-month zero period also known as the interest-free period on the dues to the Yamuna Expressway Authorities, Greater Noida, and Noida from allottee builders against the construction days that are lost due to the pandemic.
The NAREDCO letter asked to withdraw the time extension charges placed on all projects, which was forcing the builders to pay fines.
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