CREDAI National President quotes on Atamnirbhar 3.0

Confederation of Real Estate Developers Association of India (CREDAI) has announced the quotes on Atmanirbhar 3.0 for encouraging the Indian economy.

Welcoming the Atamnirbhar 3.0 Announcements, CREDAI President Satish Magar said, “The slew of measures announced by FM Today will have an overall positive impact on the economy and will definitely boost employment and provide some relief to the ailing real estate sector. Launch of ECLGS 2.0 that extends additional credit of up to 20% outstanding as of 29.02.2020 to accounts that were Standard (SMA 0) as of 29.02.2020 is a welcome step. This will address the liquidity crisis to a certain extent. The one-year moratorium on principal payment is encouraging too. However, the restriction of SMA 0 accounts will deprive many borrowers particularly real estate developers. CREDAI hopes that the Government in line with Real Estate sector demand would reconsider the restriction of SMA 0 accounts”.

Affordable housing has been a focus area of the Government and the additional outlay of 18000 Crores for PMAY Urban will encourage many developers to consider taking up housing projects under PMAY Urban. Project approvals announced under SWAMIH Fund have been aiding projects that were stuck in the final phase due to the completion of projects. The Government may consider making industry recommended relaxations to the eligibility criteria so that many more developers can access SWAMIH Funds.

CREDAI welcomes the increase in safe harbor limit from 10% to 20%.CREDAI has been requesting the Government to increase the permissible difference between the selling price and circle rates (till 30 June 2021 )as this would help developers to offload long-standing unsold inventory without having any liability under section 43CA for a developer and under section 56 (2)(X) of IT Act for homebuyers.