Homebuyers’ body to PM: Restrict project extension to lockdown period

June 10, 2020: The Forum for People’s Collective Efforts (FPCE), a forum of homebuyers, has requested Prime Minister Narendra Modi’s mediation for the centre’s advisory on extension of project completion by builders and has requested it to be limited to only the actual lockdown period. It has also requested for an interest waiver on home loans. In a letter to the Prime Minister dated June 1, the association reierated that the government’s policy should focus on the interest of homebuyers instead of builders for revival of this sector. The forum is pursuing the PM to issue guidelines to the ministry of housing and urban affairs to modify its advisory that provides a blanket extension to all real estate projects across the country for at least six month with an additional three months at states’ discretion, over and above the one year already provided under section 6 of the realty law RERA. As the extension in projects’ timelines  would consequentially increases the EMI, rentals, mental agony and harassment for consumers the body sought relief for home buyers from the government. The letter pointed out that pay cuts and unprecedented job losses have already worsened the situation for them. The homebuyers body said the moratorium on EMI payments for six months does not help much as it would only increase the future interest liabilities. The FPCE has also suggested waiver of interest amount during the moratorium period on EMIs payable by home buyers. It sought amendment in section 24(b) of the Income Tax Act, 1961, removing the 5 years limitation in claiming deductions on interest on home loans. The letter also suggested that the benefit of reduction in interest rate should be automatically passed on by the banks to all borrowers, existing and new ones.