FM, developers discuss liquidity issue, need for stress fund
Finance Minister Nirmala Sitharaman on Sunday met real estate players and discussed ways to create demand in the country's real estate market.
The major subjects discussed in the meeting included liquidity problems and completion of stalled projects.
Developers suggested the creation a stress fund for completion of stalled projects. The proposal was also put forward by home buyers in a separate meeting with the Minister during the day.
Speaking to reporters after the meeting, Niranjan Hiranandani, the President of National Real Estate Development Council (NAREDCO), said that the issue of ways to use stress funds for financing stalled projects was discussed in the meeting.
Jaxay Shah, President of Credai, said that the organisation had suggested the inclusion of financial institutions under the ambit of the Real Estate Regulatory Act (RERA) in order to aid the completion of stalled projects.
The meeting also explored measures to promote rental housing in the country.
Besides, in the meeting of the home buyers with the Finance Minister, the issues faced by them was discussed, including the need to complete stalled projects.
The home buyers' association, Forum For People's Collective Efforts, in its letter to Sitharaman noted that the stalled projects can be solved with a stress fund of at least Rs 10,000 crore.
"The objective should be to complete all pending real estate projects pan-India within a span of five years by providing for such stress fund continuously for next five years," the letter said.
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