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New Delhi, May 25: Realtors' apex body CREDAI has written a letter to Prime Minister Narendra Modi, seeking immediate relief measures to tide over the crisis caused by the COVID-19 pandemic.

The association, which has around 15,000 developer members, has sought one-time debt restructuring, lower interest rate on home loans and tax sops to boost liquidity and demand in the sector.

In an open letter to the prime minister, the Confederation of Real Estate Developers' Associations of India (CREDAI) said, "In this distressful situation arising out of the COVID-19 calamity, we in the real estate sector seek immediate relief for our survival."

Stating that the sector contributes substantially to the country's GDP and has backward and forward linkages with almost 250 industries, CREDAI said, "Our survival, therefore, is not just desirable, it is rather crucial for the economy."

Liquidity crunch, stagnant demand and cartelization of raw materials are major impediments for the industry to kickstart, it added.

CREDAI made seven recommendations to revive the sector and sought immediate intervention from the prime minister.

Pointing out that the situation is "much worse" than global financial crisis in 2008, CREDAI said "a one-time restructuring scheme as was permitted by RBI in 2008 may be quickly instituted by all lending institutions."

Since real estate was already reeling under a cyclical downturn before COVID-19, debt restructuring needs to be allowed for all accounts which were standard as on December 31, 2019, it added.

CREDAI demanded that all banks, non-banking financial companies (NBFCs) and housing finance companies (HFCs) should be directed to provide additional credit equal to 20 per cent of the existing real estate project related advances with no additional security and without the classification of project as NPA.

The penal interest charged by banks and financial institutions should be suspended for a period of one year or until such time as it takes for the pandemic to abate.

To revive housing demand, CREDAI suggested that "government should reduce the maximum rate of interest on new home loans to 5 per cent by subsidizing the interest component of EMIs for next five years."

The limit of principal deduction on housing loan under Section 80C should be increased to 2.5 lakh.

Interest deduction under Section 24 on housing loan for homebuyers may be increased to Rs 10 lakh, it said.

There should be no capital gains for residential properties held for a period longer than one year.

CREDAI also demanded that the subvention scheme be allowed again by National Housing Bank (NHB) and the Reserve Bank.

Under the scheme, builders used to pay EMIs on behalf of homebuyers during construction of projects.

"The economic uncertainty and job insecurity at the moment would not allow purchase of residential property at this time. A scheme whereby a homebuyer would need to pay only margin money with no EMI for 24 months will address this insecurity," the letter said.

The association pointed out that prices of cement and steel have been increased during the lockdown period, and asked for crackdown on cartelisation by manufacturers.

On the GST front, CREDAI said that the current regime of GST provides a rate of 1 per cent  for affordable housing.

"The limit of Rs 45 lakh serves as a criterion of affordability for the purpose of GST. On all other housing, GST is applied at the rate of 5 per cent without input tax credit. It has been felt that the criterion of Rs 45 lakh is too low an index of affordability anywhere across the country, and especially so in the metros," the letter said.

It will serve as an inducement to buyers in the metros if the benefit of GST at the rate of 1 per cent is extended to units costing up to Rs 75 lakh, the association said.

CREDAI pointed out that the flat rate of 5 per cent GST for under construction residential housing is causing cost build up and is acting as a deterrent for sale of under construction projects since there is no GST on completed units.

It suggested that GST rate of 1 per cent and 5 per cent, without input tax credit, should continue.

"However, an option of GST @12 per cent for normal housing/ 8 per cent for affordable housing (with 1/3rd deduction for land i.e. effective GST rate of 8 per cent for normal housing and effective GST rate of 5 per cent for affordable housing) with input tax credit (ITC) benefits in line with the scheme applicable for the works contracts for government may be revived and made applicable to the real estate," the letter said.

Lastly, CREDAI demanded that a Rs 25,000 crore stress fund for completing stalled housing projects should be deployed at the earliest.

"We shall be grateful for your much-needed intervention for the above mentioned measures required to revive the real estate sector," CREDAI said in the letter to the PM.

New Delhi, Mar 28: The total number of coronavirus positive cases in the country has risen to 918 that include foreign nationals, the Ministry of Health and Family Welfare said on Saturday.

The ministry said: "The total positive cases of coronavirus are 918. The active COVID-19 cases are 819. Cured and discharged are 79. While 19 deaths have occurred so far. One person with COVID-19 migrated. As many as 15,24,266 passengers were screened at airports."

Prime Minister Narendra Modi on Tuesday announced a 21-day lockdown in the entire country to deal with the spread of coronavirus, saying that "social distancing" is the only option to deal with the disease, which spreads rapidly.

New Delhi, Jul 24: The Delhi High Court on Friday asked the ICMR to come out with a clarification that mobile number, government-issued identity card, photographs or even a residential proof ought not to be insisted upon for Covid-19 test of mentally ill homeless persons.

According to an Indian Council of Medical Research (ICMR) advisory of June 19, every person who was to be tested for Covid-19 has to provide a government-issued identity proof and should have a valid phone number for tracing and tracking the individual and his/her contacts.

A bench of Chief Justice D N Patel and Justice Prateek Jalan said that ICMR should issue a clarification by way of a circular or an official order that the identity proof, address proof and mobile number are not required for testing mentally ill homeless persons.

The high court said a camp can be organised for testing such persons as is being done across Delhi for others.

"Guidelines have to be given by you (ICMR). You put it in black and white for the states'' benefit. You only need to clarify in two-three lines that mobile number, address proof and identity cards are not required for testing mentally ill homeless persons," it said.

"Use your powers for the public at large. Once you do so (issue the clarification), all states will comply," the bench added.

Additional Solicitor General Chetan Sharma, appearing for ICMR, sought time to take instructions from the government regarding the observations made by the bench.

The high court, thereafter, listed the matter for further hearing on August 7.

The bench was hearing a PIL moved by advocate Gaurav Kumar Bansal seeking directions to ICMR and Delhi government to issue guidelines for Covid-19 testing of mentally ill homeless persons in the national capital.

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The high court on July 9 had asked the ICMR to consider the plight of the mentally ill homeless persons and see whether they can be tested without insisting upon a mobile number, government issue identity card and residential address proof.

The bench had said to ICMR that many homeless mentally ill persons are institutionalised or in shelter homes and therefore, traceable, so there was no need for their identity proof or phone numbers to test them for Covid-19.

In response to the court''s query, ICMR has filed an affidavit stating that the purpose behind the submission of government identity card and telephone number was to ensure proper tracking and treatment of positive cases and their contacts as ''Test/Track/Treat'' is the best strategy for control of Covid-19 pandemic. 

It further said that since health was a state subject, the concerned state health authority may consider adopting a suitable protocol to ensure that the strategy of ''Test/Track/Treat'' is followed and the grievance raised in the PIL is also addressed.

ICMR, in its affidavit, has said that it has only advised facilitating contact tracing as well as tracking of the Covid-19 infected patients.

"The modalities regarding the contact tracing as well as tracking of the Covid-19 infected patients completely falls under the domain of IDSP. NCDC and state health authorities. 

"ICMR is a research organization and the contact tracing, as well as tracking of the Covid-19 infected patients, is not under the domain of ICMR," it has said in its affidavit.

Bansal has claimed in his petition that the Delhi government has not taken seriously the lack of guidelines with respect to Covid-19 testing of mentally ill homeless persons.

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He has said the high court had on June 9 directed it to address the grievances raised by him in another PIL with regard to mentally ill homeless persons in accordance with law, rules, regulations and government policy.

He said that on June 13 he also sent a representation to the Chief Secretary of Delhi government for providing treatment to mentally ill homeless persons in the national capital who have no residence proof. 

However, nothing was done by the Delhi government, he had told the court.