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Covid-19 Lockdown : Over 65% home buyers expected to default on their instalments

MCHI-Credai the apex body representing over 1,400 builders in the Mumbai metropolitan region (MMR) said that the outbreak of coronavirus has left an impact on the real estate. With a figure of around 65%, all of the flat buyers have been defaulting on installments since the last week.

As the malls are remaining close, there is a clear indication that no payment would be made to the owner of the mall. This in return will be having a cascading effect as the owners of the mall would not be able to provide service to clear their loans to the bank.

It added that the individuals who have bought flat would need to clear their installments which are based upon construction linked under the milestones named RERA. Moreover, because of such conditions, the payment would get delayed. If the coronavirus continues to prevail, this would affect around 90 lakh of people.

Boman Irani who is the vice-president of the body addressed that the threat of coronavirus has further thrown the industry into chaos.

He added to it that we can expect the government to take a call on this sector.
MCHI-Credai has requested the state government to decline the payment of taxes and various premium amounts to the BMC for around a year without any interest.

It also stated that every premium which is payable to BMC and the state government can be reduced by around 74% for the next five years. The order of government for lockdown and close of malls has led to a serious scenario for everyone who belongs to the market.

Shoppers Stop occupies an area of nearly 60,000 sq ft in the mall and has been paying a monthly rent of Rs 70 lakh. Such conditions need to come up in front of the government so that proper action is taken said the reporters.

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