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Myshopdeal News Plea to Supreme Court And RBI For Real Estate Relief.

Ipshita Ray

The lockdown due to Covid 19 has created a global financial meltdown. Many large and small industries have been adversely affected. One such industry which has been badly hit is the real estate industry.

Under the real estate law presently, developers are liable to a fine if they make a default on project completion timelines. They also have to pay a fine equivalent to 10 per cent of the project’s cost if they fail to register their ongoing projects with the real estate regulatory authority (RERA). Similarly, homebuyers are also liable for not paying dues owed to the developer. 

Government has given a six-month extension to developers for meeting their project completion timelines while the homebuyers have been given the same extension to make the payments due to developers. 

In light of the situation, the real estate sector and construction businesses are still suffering. Although restriction on construction has now been lifted, the sector is yet to pick up pace as a majority of labourers, who come from villages in other states, moved back when the lockdown began. The stressed-out real estate industry may result in hostile takeovers by opportunists. This would further the financial massacre and remove small and medium players from the industry.

The economic slowdown and major problems in real estate have led 1400 real estate developers to approach the Supreme court and seek a relief package for the ailing real estate sector. The real estate sector was not allowed to operate during the lockdown whereas many other sectors were allowed operation. 

A bench headed by Ashok Bhushan and V Ramasubramaniam issued notice to the central government and the RBI on Friday. Senior counsel Kapil Sibal and Kunal Vajani instructed by law firm DSK Legal represented the petitioner. 

The petitioner prayed for the relief which includes a waiver of interest during the moratorium period, one-time restructuring, immediate passing off benefits of reduction of repo rate and extension of loan tenure in respect of deferred instalments. 

We are sure the government is going to consider the problems faced by the real estate industry as well as the customers associated with it and will soon announce measures to save the interest of home buyers & protect the sector from adverse impact.

Keep tuned for more news and updates on the real estate industry. Follow our social media handles to get instant messages. Myshopdeal is an official channel partner of A category builders like DLF, Bestech, M3M, AIPL, Shapporji Pallonji, Tata and many more. Call us at 9711750505 to know more and discuss every real estate requirement.