He says, “Suppose Rs 100 crore. A builder who starts a project worth Rs. (As advance) and hence it will be Rs. 60 crores. Takes a loan of If, due to the downturn in the market, it is only 30 crores. Was able to raise the same and the builder got 10 crores. If additional loan is required, the bank will have to classify the previous loan of Rs 60 crore as NPA. Thus, a mere Rs 10 crore. 100 crore due to shortfall of Rs. ‘S project will be spoiled.’ ‘
The government’s move to recapitalize banks will help to some extent. Niranjan Hiranandani, co-founder and managing director of Hiranandani Group, a Mumbai-based developer, says, “70,000 crore. With the re-capitalization of public sector banks, the shortfall in funds received from NBFCs should be reopened. This will boost the demand for houses and accelerate new loans. The government has taken this step with the intention of speeding up demand and easing bank credit, which will surely provide some relief to the industry.
Tax reduction: Many argue that the government should reduce taxes — for example, it is unfair to tax a ready-to-move apartment. Although GST has simplified taxation, but it has not reduced the cost of real estate. The houses under construction have been fixed at 5 percent GST for mid-range properties and 1 percent GST for affordable homes. However, this does not include input credit benefits, which reduces the overall cost of purchase. Nitin Aggarwal, president of CREDAI Bhopal, says that frequent changes in the tax structure, especially GST and frequent changes in service tax, have also caused considerable damage. Apart from these, 5-7 percent registration fee and stamp duty is levied on the houses under construction. Enarock says that it effectively eliminates the price concession Bhutani Grandthum .
Make RERA Uniform: The real estate sector has traditionally been known for its unorganized nature, the needless delay of developers in completing the project, and the unscrupulous developers misusing the buyers’ money or altering the project’s plans. Which causes the buyers to get shocked. The real estate market is also notorious for large-scale cash payments and as such, ‘black money’ has been used as property. It has made the sector opaque and has attracted a large number of investors who have played a gamble in this market
