Walking from Delhi to MP, man dies in Agra amid lockdown

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, Jun 25: The Supreme Court on Thursday asked the Centre and the CBSE to issue fresh notification in connection with Class 12 exams, clarifying the option between internal assessment and exams later.

The observation from the top court after it was informed that the CBSE has decided to cancel the remaining board exams for Class 10 and Class 12.

A bench comprising Justices AM Khanwilkar, Dinesh Maheshwari and Sanjiv Khanna asked the Centre to clarify the issue of taking the option between internal assessment and exams later.

"Clarify the date of results," said the bench, noting that the CBSE will have to submit a fresh draft notification cancelling class 12 Board exams and affidavit on Friday morning, before the top court continues to hear the matter again at 10.30 a.m.

The apex court also sought clarity on the beginning of the new academic year.

It told Solicitor General Tushar Mehta, representing the Centre, that the CBSE is willing to conduct exams when the situation is conducive, but this may vary from state to state. "Will the decision be taken by a central authority or will the state government take the decision? How are you going to deal with that situation?"

Mehta replied that the decision must be taken according to the situation. To this, the bench said should not the solution be pan-India?

"You have not said when you will decide on this issue, and when you will take stock of these things. Some time frame will have to be given," noted the bench.

Continuing its queries, the bench said: "What about state regional board exams... the CBSE does not hold all the exams. The state Board is also there."

Mehta replied that the instructions from the controller of examinations are that exams are controlled centrally. "State boards assist the CBSE," he replied.

The bench observed that the government should modify the draft notification and include the state board issue. "Clear the stand that decision will be taken at the central level and not at the state level... other courses will have to be delayed till CBSE exam results come out," it said.

Mehta replied the assessment results will be published now, and if a student wants to opt to give the exam, then that will be conducted later. The top court asked Mehta to bring this on record and redraft the notification.

New Delhi, Jan 7: Services at various bank branches and ATMs are likely to be affected as hundreds of employees will go on a bank strike across the country on Wednesday.

The bank strike is part of the Bharat Bandh call given by trade unions to protest against the labour reforms and economic policies of the Central government, according to reports.

The protestors' main demand during the Bharat Bandh is that the Centre should drop the proposed labour reforms.

A Bill in this regard was passed and proposes to merge 44 labour laws into four codes -- wages, industrial relations, social security, and safe working conditions.