Homebuyers urge PM Modi not to grant undue extensions to builders

While the homebuyers have already been a harried lot due to salary cuts and job losses on the back of economic unrest created by COVID-19, the recent extension provided to the developers have added further woes in the form of additional interest burdens. In view of this, Forum for People’s Collective Efforts (FPCE), a pan-India homebuyers’ organization, has approached Prime Minister Narendra Modi asking for relief. The FPCE has through a letter to the Prime Minister, shared their grievances and sought his intervention in the same.

The FPCE has pointed out that for the period of the extensions provided to the developers, the government must have also provided relief in home loan installments. In a recent announcement by the Finance Minister, the RERA authorities have been advised to extend project completion timelines by six months, besides an additional three months extension at the state’s discretion. The homebuyers will have to pay additional interest for this period and that has emerged as a bone of contention.

Moreover, the additional nine months’ time for project completion will result in project delays hence it’s a double whammy for homebuyers since they will have to unnecessarily pay rent and EMIs altogether for this period. The FPCE has also stated that the builders will now delay the projects but the homebuyers’ will not be paid any compensation against the delay. According to FPCE, it’s grossly unfair to homebuyers. The FPCE also wants the banks to pass on the benefits of the recent repo rate reduction to them in the form of reduced interest rates on home loans.