Mumbai, April 8 : Real estate industry body NAREDCO has requested the Centre for $200 billion relief for the entire economy to meet the impact of the Covid-19 outbreak.
NAREDCO said that real estate has been under consistent stress since the last few years and that market dynamics have changed rapidly which has resulted in rising unsold inventories in the country.
“The Covid-19 pandemic has paused the real estate sector while disrupting the businesses across the nation. While the RBI and the Finance Minister have taken several measures to ease the load on consumers’ shoulder, real estate collectively grapples with the impact of the pandemic,” NAREDCO said in a statement.
According to the real estate industry body, in order to keep up with the world economy, the Centre should suspend all NCLT activities for next 6 months considering the downfall of the economy of India.
“The idea is to provide a breathing space to companies who have faced huge losses due to rapidly decreasing stock prices, which has made high net worth companies prone to be taken over by foreign investors, the results of which can be devastating for India,” the statement said.
“Since real estate accounts for 6-7 per cent of India’s GDP and employs nearly 10-11 per cent of population, we urge the government to focus on the demand of the developers.”