Builders in Noida and Ghaziabad hailed the government's stimulus measures for the sector on Wednesday but hoped for more steps that can help them get priority funds from banks to complete stuck projects.
Announcing a slew of stimulus measures, Finance Minister Nirmala Sitharaman earlier on Wednesday said the deadline for completion of real estate projects will be extended by up to six months, treating the coronavirus outbreak as a 'force majeure' event under the realty law RERA.
The western Uttar Pradesh chapter of CREDAI, an apex body of developers, said the government's steps would bring relief to the builders.
Relaxation in registration and completion date for the ongoing registered projects is a welcome move. However, this is the first instant assistance by the government that was highly and naturally required. We were expecting relaxation for one year to complete the projects and are waiting for more relief from the government in the coming days, CREDAI Western UP President Prashant Tiwari said.
Sagar Saxena, the project head for Spectrum Metro, said the latest announcements will help the sector but the need of the hour is a wider relief package.
At this point, the sector needs steps that could help them complete the stuck projects and get priority funds from banks. Though the latest announcement by the Finance Minister will ease out the burden of getting into defaulter list for missing construction deadlines, the real issues remains to be addressed still, he said.
We hope that this government, which is constantly showing its intent of improving the economy, will look into the matter and take a slew of measures at one-go instead of fewer steps after a long gap, Saxena added.
Gulshan Homz Director Deepak Kapoor said relaxation in timelines is a welcome step but the fraternity hopes that the government will soon take a decision on providing liquidity to the sector.
The Ministry of Housing and Urban Affairs will issue an advisory to real estate regulators of all states and Union Territories to treat COVID-19 as an 'act of God' so that 'force majeure' clauses under RERA can be invoked for providing relief to builders in completion of projects.
Ajnara India CMD Ashok Gupta said the sector has been requesting the government for measures that can help maintain the good image of real estate that has emerged especially after RERA.
The latest 'Act of God' would have wiped out all the positive efforts made by the developers towards streamlining. In this backdrop, the announcements made by the FM will help the sector save it's hard-earned image, Gupta said.
Mahagun Group Director Dhiraj Jain said developers are dedicated towards fulfilling the promises made to the buyers.
The realtor community has been focussing on delivery over last one year but this global pandemic was about to derail it. The government has intervened at the right time and given developers a space to breath as they were also facing the problems which are faced by other industries or sectors, Jain said.
Saya Homes Managing Director Vikas Bhasin hoped the implementation will happen soon as the government has been showing its intention towards solving the problems of sectors and industries.
It is good for the overall development of the economy. Real estate being the second largest employer in the country could not have been left to fend for itself, he said.
The relaxations announced will help the sector concentrate on what it does best - deliver to the satisfaction of the customers, he added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)