As real estate flounders, Naredco-UP appeals to FM for bailout, easing of SWAMIH fund norms

In a letter to the finance minister, the industry body underscored the terrible market condition and requested policy decisions that would help revive the real estate sector.

With the real estate market taking a beating during the Covid-19 pandemic, the Uttar Pradesh chapter of the National Real Estate Development Council (Naredco) has sought a bail-out package from finance minister Nirmala Sitharaman on the grounds that sales have plummeted and projects have almost stalled due to a severe lack of funds. In a letter to the FM, Naredco stated that banks as well as NBFCs have stopped issuing fresh loans to projects and are also not disbursing amounts sanctioned to home loan borrowers, leading to a severe liquidity crunch in the sector. The industry body has urged Sitharaman to amend the guidelines of the AIF-SWAMIH Fund to provide cashflows to existing lenders. It also appealed for a direction to banks and other financial institutions to allow fresh project loans as last-mile funding to complete the stalled projects, with a moratorium of one year for principal and interest.