Finance Minister Nirmala Sitharaman held meetings with developers, real estate regulation authorities and home buyers.
[ET Bureau | new Delhi ]
The government has assured to find ways to solve the problems of home buyers and start stalled real estate projects.
Finance Minister Nirmala Sitharaman on Sunday held a meeting with developers, real estate regulation authorities (RERA) members and some home buyers to understand the problems in the real estate sector. Issues such as weak demand, liquidity problems, stalled projects and home buyers problems were discussed in the meeting.
He informed that the government will find ways to solve problems related to home buyers and stalled projects.
After the meeting, Housing Minister Hardeep Puri said, “The government will solve these problems in the coming days and we hope that this will give relief to the real estate industry.”
The Confederation of Real Estate Developers’ Associations of India (CREDAI) has suggested that RERA should be empowered to resolve chronic problems. CREDAI chairman Jacques Shah said that if financial institutions also come under the purview of RERA, there will be a possibility of early resolution.
Sitharaman said, “We have held some meetings to address the problems of home buyers of NCR.” He informed that work is being done to overcome the difficulties faced by the home buyers due to the developers not completing the project.
Organizations associated with the real estate industry have suggested reducing the interest rate on home loans and withdrawing the National Housing Bank (NHB) circular in which interest subvention schemes of realty companies were banned.
The Forum of People’s Collective Efforts (FPCE) has demanded a fund of Rs 10,000 crore to complete the stalled projects.
Home buyers of the Jaypee Group told Sitharaman that the projects are not being completed despite the company’s promoters having other assets such as the big land bank and the Yamuna Expressway project.
Niranjan Hiranandani, president of the National Real Estate Development Council (NAREDCO), said, “Like the entire economy, the real estate industry is also going through a crisis. We are happy that the Finance Minister and Housing Minister held a meeting with us to understand the situation.
To speed up the economy, the government has met with industry representatives from almost all sectors. Sitharaman has so far met representatives of the automobile, capital markets, and small and medium enterprises sectors.
After her first meeting with the bankers, Sitharaman had said that the government was helping in the resolution of bankruptcy cases involving a large number of home buyers.
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