Allow sale agreements on stamp papers during this lockdown for loan processing: CREDAI

Realtors' body Credai on Saturday demanded that real estate regulators across States should allow execution of sale agreements for booking of flats on stamp papers during this lockdown so that banks can provide home loans to customers to buy properties.

Participating in a webinar organised by the Ministry of Housing and Urban Affairs to celebrate the three years of RERA law, industry bodies demanded that the government should reintroduce subvention scheme as prospective buyers cannot pay both rent and EMIs on home loans at the same time.

They demanded one time debt restructuring for the industry and tax sops to home buyers among other measures to boost liquidity and demand in the realty sector.

CREDAI, NAREDCO, Assocham and FICCI took part in this video conference.

Speaking at the conference, CREDAI Chairman Jaxay Shah requested that regulatory authorities across States should allow sale agreements to be executed on stamp papers during this lockdown period so that banks and other financial institutions can provide loans to prospective customers.

He said the Rajasthan government has already allowed this and other States should follow suit.

The registration of Agreements to Sale is not possible now, Shah said.

This would boost housing demand and keep the cash flow cycle moving, he added.

Shah also demanded that there is a lot of data with real estate regulators across states, which can be collated and analysed for proper policy formulation for the overall growth of the sector.

Niranjan Hiranandani, President of Assocham and Naredco, demanded that more stress funds should be created for last mile funding of the real estate sector and pitched for one time debt restructuring of builders loan.

He also urged the government to reintroduce subvention schemes, which was banned by the government. Under the scheme, builders used to pay EMIs on behalf of customers till a certain period of time.

HDFC's MD Renu Sud Karnad said there should be uniformity in all the websites of RERA across various States.

She strongly advocated for reintroduction of the subvention scheme, saying that customers are facing liquidity issues and are not in a position to pay both rents and EMIs.

CREDAI President Satish Magar demanded that local authorities should be brought under the ambit of the RERA law.

Naredco Maharashtra President Rajan Bandelkar demanded tax sops for home buyers and also an increase in the Rs 45 lakh cap for projects to fall in affordable housing definition.