The new set of stuck projects that have been finalised for investment are located in cities and towns such as Bengaluru, Chennai, National Capital Region, Bahadurgarh, Sonipat and Rewari.
The report says that few universities have reached out to operators asking them to collect fees on a monthly basis rather than collecting a full year in advance to reduce the cash flow impact on parents. Some operators are hoping for regulatory intervention that supports rental exemptions for tenants in such scenario.
As per the plea, Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN), a joint venture company between Maharashtra Airport Development Company and Airports Authority of India (AAI), is now planning on issuing fresh tenders for the project.
The other impact from the lockdown is the labour shortage as migrant workers are returning home, which would delay the execution of already contracted projects and escalate associated costs for construction companies.
The ministry has issued this advisory after holding discussions with state governments, municipal corporations and NOC issuing central agencies earlier this week following representations from various stakeholders requesting for such extension for a period of minimum 9 months.
The former union minister also tweeted the same stating that amidst the unprecedented pandemic covid-19 and subsequent nationwide lockdown, the real estate sector is in a state of complete breakdown.
The Gurugram Metropolitan Development Authority has said it will not treat the office as containment zone but will instead sanitise the building in case a confirmed case is found. While South Delhi district magistrate has said in any such occurrence, the area will be declared as containment zone, and if more than three cases are found, the office will be sealed for 28 days.
Apart from large developers who already reap scale benefits, even smaller and mid-size entities will be able to get cost efficiency once this collective bargaining initiative rolls-on.
The firm, JP Morgan India on other hand denied any wrong doing and said that attachment of properties by the Enforcement Directorate is blatantly illegal as it was not part of any kind of financial dealing with Amrapali Group and it was JP Morgan Singapore and Mauritius which had allegedly invested in the real estate group.
Jaypee group, which is into construction, cement, power, real estate, hotel and hospital businesses, has been facing crisis in the last few years due to defaults in debt repayments and huge delays in completion of housing projects in Noida and Greater Noida.
A major restricting factor is that despite the RBI’s 2.5% reduction in repo rate since January, the maximum reduction passed on by the bank to the borrowers is between 0.7-1.3% largely from August 2019 till date, and in some case the benefit has not been passed at all. Real estate industry still getting to finance at much higher rates, therefore, provision of appropriate directions to the banks.
Developers estimate the move to collate orders to get supplies will fetch at least 5-7% cost benefit to developers and ultimately to homebuyers. Apart from large developers that already derive such benefits due to their scale of operations, smaller and mid-size entities will also be able to gain cost efficiency on this count.
Recently, former chief minister Devendra Fadnavis had also suggested a 40 per cent reduction in the ready reckoner rates. To curb the spread of the deadly coronavirus, chief minister Uddhav Thackeray had imposed partial lockdown in Maharashtra from March 18 itself.Later PM Modi announced a nation-wide lockdown from March 25 which has now been extended till May 31.
The promoters of the Mumbai-based and at one point a listed firm on the BSE, owed around Rs 1,400 crore to its lenders had approached the court to declare them as insolvent. The father-son duo had also sought the court's approval to appoint an Official Assignee (OA) to take charge of their assets to pay the debt to their lenders.
Following the central government’s advisory, it has classified the COVID-19 pandemic as force majeure and has also extended the time limits of all statutory compliances that were due by March 15 to September 15, 2020.
