Realtors welcome moratorium on payments of dues

Abhishek Behl

Gurugram : Realtors on Tuesday said that the decision of the Haryana government to grant a moratorium on payment of fees related to change of land use (CLU), licence renewal and other interest payments is a positive step that will give a breather to the real estate industry.

However, to boost the confidence of buyers, the developers want the stamp duty on registration of properties to be reduced for the interim period.

Further, a one-time settlement for the previous dues of external development charges (EDC) or infrastructure development charges (IDC) can also help boost sales, said city-based realtors.

The Haryana government on Monday had decided to consider the period from March 1 to September 30 as “zero period” during which there will be a moratorium on compliance rules and interest payments for all realty projects.

A government spokesperson said that this moratorium shall apply to CLU, renewal of licences, the extension of CLU, fees payment and charges as per the Haryana Apartment Ownership Act, 1983.

Presently, the registration fee for a property in the state is between 5 and 7% depending on the category of buyers.

Parveen Jain, chairman, national real estate development corporation (Naredco), Haryana, said, “It was becoming difficult for the developers to get bank guarantees for EDC. It is a good step that the government has agreed to change this condition. The government also needs to bring in more clarity regarding quarantine of labourers who wish to return to work,” he said.

Prashant Solomon, spokesperson, the Confederation of Real Estate Developer’s Association of India (CREDAI), NCR and Haryana, said, “ The money which can be paid to the government later can now be utilised to complete projects. If the government lessens registration fees then more buyers will come forward to buy properties.”