Home Business Mumbai : Government finally acknowledges for drastic needs to be done for real estate – Nayan Shah, President CREDAI-MCHI

Mumbai : Government finally acknowledges for drastic needs to be done for real estate – Nayan Shah, President CREDAI-MCHI

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Mumbai :   Government finally acknowledges for drastic needs to be done for real estate – Nayan Shah, President CREDAI-MCHI

Government finally acknowledges for drastic
needs to be done for real estate – Nayan Shah, President, CREDAI-MCHI

It certainly comes as a
very welcome mood that finally, the government has acknowledged for something drastic needs to be done for real estate. The real estate alone impacts no less than 270 or industry sector data reliant on real estate alone.

However having said that the current permission is not going to be of any help for the last minute funding for thousands of projects as more than lakhs of customer’s are waiting for their homes to be delivered. The current provision applies only to those projects. which have been declared NPA or whichever has been refered to NCLT with the condition that their net worth is positive. If a project has already been declared in NPA, it means that there is no net worth postivity in that project. Instead the government should have made this funding open to those projects which had a positive cash flow. Because project which is cash flow positive definitely has the strength to survive. It is merely because of the current economic situations and due to which the project has gone into the doldrums.This liquidity support for the project will kick off and would be back on the track. This is what was one more request of MCHI which has al through out been that the government with the help of RBI should allow a one time restructuring of all real estate loans .This is one major step itself is going to give a big booster to the entire real estate sector.

Source: Nayan Shah, President, CREDAI-MCHI

Edit by K.V.Raman

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