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Homebuyers have also sought relief towards the interest payment on EMIs during the moratorium period. Photo: Mint
Homebuyers have also sought relief towards the interest payment on EMIs during the moratorium period. Photo: Mint

Homebuyers' body writes to PM against deadline extension to developers

  • In the relief to the developers, the government had said that the covid-19 outbreak should be considered an event of ‘force majeure’ or an ‘act of God’ under Rera.

Highlighting the plight of homebuyers, Forum For People’s Collective Efforts (FPCE), a pan-India homebuyers’ body, has written a letter to Prime Minister requesting to change the six-nine months extension provided to the developers under the covid-19 relief to a normal extension instead of ‘force majeure’.

In a relief to the developers, the government had said that the covid-19 outbreak should be considered an event of ‘force majeure’ or an ‘act of God’ under Rera. Therefore, developers will not be required to pay any penalty for the delay to homebuyers.

The letter written by FPCE highlighted that around 10 lakh homebuyers are waiting for their houses that are stuck in thousands of projects across the country. therefore, this relief to all the developers will put further strain on homebuyers as they will have to continue paying EMIs (equated monthly instalments) and rents, and especially, when homebuyers themselves are facing job losses and pay cuts.

“This would only add to the burden of rent, EMI, loss of compensation, delay, and now interest on suffering homebuyers due to delays and job losses or pay cuts. In contrast, the builders would get a free hand to delay the project by six to nine months more, without any liability of penalty, interest, compensation as envisaged under Rera," said the letter written by M S Shankar, General Secretary, FPCE.

The homebuyers through the letter requested that an advisory should be issued by the ministry of housing and urban affairs, that instead of giving a blanket relief to all the developers, homebuyers’ consent should be taken prior to providing the extension and the cost of the extension should be borne by the builder. Also, homebuyers have demanded that the extension should be limited to the actual period of lockdown instead of a blanket six-nine months to all developers.

FPCE also requested that the developers shouldn't be given extension without payment of penalty as homebuyers have to bear the additional cost due to this as they will have to continue paying EMI and rent. This will also work as a deterrent for those developers who are seeking unnecessary extension and delaying project completion.

The homebuyers also sought some relief towards the interest payment on the EMIs payable during the moratorium period, especially for those whose projects are delayed and requested it to be recovered from the developer.

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