NAREDCO writes to UP CM, request for interest-free period

The National Real Estate Development Council (NAREDCO) has written to the Uttar Pradesh Chief Minister seeking 18 months interest-free period (Zero period) to real estate developers for any outstanding including land dues, lease rent, FAR cost.

The association has also requested the state government to permit extended completion time of projects without cost treating the disruption period force majeure, and other reliefs to mitigate the problems in completing construction and handing over possession of flats.

“The situation has brought the construction activities at all projects to a complete standstill. Since the COVID-19 cases are still rising rapidly and no indication of the situation improving is visible, it is expected that the construction will suffer atlelast for next six months. Even after that, it will take time to restore the material supply chain, re-engagement of manpower and machines,” said RK Arora, president, NAREDCO-UP.

In his letter, Arora has said that real estate industry is one of the major contributors to the economy as it provides job to large number of people both direct and indirect.

“This industry, in spite of its vast potentials and capabilities to support and strengthen 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,” the letter says.

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The association has also demanded withdrawal of demand for time extension charges, claiming the authorities are making huge demands under the guise of time extension charges for project completion.

“These demands are illegal and beyond the scope of the lease agreement between the developer and the authorities as also the building regulations,” the letter says.

The association has also said that large number of applications from developers for completion and occupancy certificate and map approval are pending with these authorities for want of No Dues Certificate (NDC).

Due to this reason, the developers are not able to carry out and complete construction and give possession of units to allottees.



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