Reaction by Mr. Kaushal Agarwal – Chairman, The Guardians Real Estate Advisory on FM’s announcement on relief package

New Delhi, May 14, 2020: The Government has intended to resurrect the economy by reviving sentiment. The Rs.30,000 crores infusion in NBFC’s, HFC’s and micro-finance companies with the help of debt papers and additional 20% emergency credit line to businesses will directly impact the Real Estate sector and bring much required liquidity for construction and project completion.  Additionally, the invoking of force majeure clause for registered real estate projects will protect the interest of developers, by extending the completion timeline by a duration of 6 months under RERA automatically. The same was much required, as a lot many developers could face challenges of aligning construction workers and labourers for the next few months as a result of their migration. The 25% TDS reduction will benefit existing homebuyers as it will leave additional money in their hands. Additionally the 3 lakh crore collateral free loans for small business and Rs.20,000 crore fund for stressed MSME’s will offer respite in these testing times to major employment generating business category.

Corporate Comm India (CCI Newswire)