You are here: Home » PTI Stories » National » News
Business Standard

BJP MP demands waiver of home loan interest during COVID-19 lockdown


Press Trust of India  |  Bengaluru 

: The BJP Rajya Sabha member from

Karnataka Rajeev Chandrasekhar on Monday demanded that the Centre waive interest on home loans during the COVID-19 'force majeure' period.

He wrote to Union Minister for Housing and Urban Affairs Hardeep Singh Puri, referring to the April 29 meeting of the Central Advisory Council, formed as per the Real Estate Regulation and Development Act (RERA) guidelines.

Puri is also the chairman of the CAC.

The BJP MP pointed out that a decision was taken at the meeting to provide six months extension for all active RERA registered projects due to the COVID-19 lockdown and to allow further extension on special cases after looking into the merits of each case.

Just as relief is being given to the builders, the interest of home buyers who are undergoing unimaginable economic hardships in these unprecedented times of COVID-19 lockdown needs protection, the MP said.

"The interest part on the principal amount of the Loan during this COVID-19 force majeure period should be waived for the homebuyers.

For no fault of the buyers, they need not pay both rent and Equated Monthly Installment (EMI)," the MP said.

'Force Majeure' clause is a contractual provision that addresses circumstances in which contractual performance becomes impossible or impractical due to events that could not be foreseen, and are not within party's control.

He insisted that the extension of completion time for RERA registered projects be for the actual lockdown period only and that projects should not be delayed for the home buyers.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, May 11 2020. 17:20 IST