NAREDCO urges UP CM to provide relief to real estate developers amid pandemic

Noida (UP), May 12 (PTI) Real estate body NAREDCO on Wednesday said it has requested Uttar Pradesh Chief Minister Yogi Adityanath for an 18-month interest-free period for developers for clearing outstanding land dues, lease rent and other payments amid the second wave of the COVID-19 pandemic. The National Real Estate Development Council (NAREDCO) has also sought extension of time period for completion of projects, among other relief measures to mitigate problems in completing construction and handing over possession of flats to allottees. In a letter to the chief minister, NAREDCO UP Chairman R K Arora said the real estate industry, in spite of its vast potential and capabilities to support the economy, has been "neglected" at all levels and has been the "victim of all adverse situations". "Construction at the real estate projects has always been the first casualty for the environmental issues, ground water level issues, Master Plan issues, legal issues, labour exodus, and now the pandemic COVID-19, as a result of which almost all the projects are delayed causing cost escalation, liquidity crisis, defaulted land payments and the project loans becoming NPA," he stated. Arora said the delay in completion of these projects have resulted in agitation by homebuyers and large number of complaints in different fora like RERA, consumer forums and civil courts, which are imposing heavy fines on developers. Putting forward NAREDCO UP''s demands, he urged the chief minister to issue directions to the industrial development department/authorities to allow relief to the sector, treating the pandemic as a "National Natural Calamity". The demands included an 18-month interest-free period (zero period) on the dues to the Noida, Greater Noida and Yamuna Expressway Authorities from allottee developers against construction days lost on account of the pandemic. "Withdraw the demand of time extension charges on all projects which have obtained occupancy certificate of minimum requirements of total FAR of allotted plot as per building bye laws," the NAREDCO letter stated. The industry body also batted for tagging of authorities dues with sub-lease permission flat-wise on pro-rata basis, besides withdrawal of increase in rate of lease rent. PTI KIS ABM ABM Source: Outlook