Homebuyers’ Body Writes to PM, asks to Restrict Project Extension to Lockdown Period
The Forum for People’s Collective Efforts (FPCE), a forum of homebuyers, has sought Prime Minister Narendra Modi’s intervention for interest waiver on home loans. It also wants the extension of project completion by builders to be restricted to only the actual lockdown period.
In a letter to the Prime Minister dated June 1, the association suggested that the government’s policy should focus on homebuyers instead of builders for revival of this sector, reports news agency PTI.
The forum has requested PM Modi to issue directions to the ministry of housing and urban affairs to modify its advisory that provides a blanket extension to all real estate projects across the country for at least six month with an additional three months at states’ discretion, over and above the one year already provided under section 6 of the realty law RERA.
Instead, it said that the extension in projects completion timeline should only be for the actual period of lockdown when construction wasn’t permitted.
“Anything other than this, is patently illegal and should not be promoted by the very custodians of the law,” it said.
Pointing out that the extension in projects’ timelines “increases the EMI, rent, mental agony and harassment,” the letter said that it is the home buyers who need support from the government.
“In-fact, Sir it is the home buyers of the country who are in dire need for support from your government as they are facing unprecedented job losses and pay-cuts,” the letter said.
Last month, Union finance minister Nirmala Sitharaman , as part of the Centre’s economic stimulus to industries affected by the coronavirus outbreak, had said that the Covid-19 pandemic should be considered an event of ‘force majeure’ or an ‘act of God’ and announced to extend the registration and completion date by six months of all projects registered under the Real Estate Regulatory Authority (RERA). This would apply to all real estate project registrations expiring on or after 25 March and individual applications are not needed.
The homebuyerrs body said the government has given a moratorium on EMI payments for six months, but it would only increase the future interest liabilities.
The FPCE has also suggested waiver of interest amount during the moratorium period on EMIs payable by home buyers. It sought amendment in section 24(b) of the Income Tax Act, 1961, removing the 5 years limitation in claiming deductions on interest on home loans.
The benefit of reduction in interest rate should be automatically passed on by the banks to all borrowers, existing and new ones, the FPCE letter said.
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