Suspend Recovery Proceedings Against Realty Firms, Stay Civil And Criminal Proceedings: PHD Chamber
New Delhi: Suspend all recovery proceedings against real estate companies for 6 months and staying all civil and criminal proceeding against realtors till 30 September 2020, the PHD Chamber has requested government.
In view of the corona pandemic and the lockdown, the chamber as written to the government requesting that accounts should not be declared NPA for as many as 270 days instead of just 90 days at present. The chamber argued that similar measure was taken after the 2008 recession. The chamber has also requested extension of additional facilities, to the tune of 30 percent of existing facility, as working capital demand loan with interest rate of Repo Rate plus 2 percent. This should come with 12 months moratorium and 36 months repayment plan, on existing security. This will help in overcoming cash flow mismatch.
The chamber said that all the interest charged within the zero period should be entirely deferred. It should be recoverable within 6 months from the expiry of the original tenure of the loan without any penalty or even interest on it.
The chamber has asked for deferring of the principal loan installment payments right up till March 2021. This should be done by converting in to five-year term loan with one-year moratorium without affecting account classification and credit rating. This again should be done at an interest rate of Repo Rate plus two percent.
The developer should also be granted GST input credit for next one year on real estate transactions. Central Advisory should be issued to RERA to increase the timelines for real estate projects by one year as there is disruption in business due to pandemic. It also asked for deferment of 6-months for the statutory payments like local taxes, cess, land payment, etc.