Status as on 11/04/2020
Parsvnath Developers along with the associate companies took a much-needed philanthropic step to waive off the interest over the outstanding amount on pending payments from homebuyers and allow something called as interest holiday.
Introduction
The real estate sector has been affected adversely due to the lockdown. However, the government has taken proactive steps to neutralize the possible repercussions of the national wide lockdown on the real estate industry. Nevertheless, these steps have not been sufficient and it called for collaboration from various stakeholders as well. Thus, taking into consideration the intensity of the situation a New Delhi based real estate company came forward. The Parsvnath Developers along with its associate companies decided to provide an interest holiday on outstanding amounts to all its home buyers for three months from March 15, 2020, till June 15, 2020.
Impact over the Home-Buyers
The waiver of interest over the outstanding amount will certainly have a positive effect on the homebuyers. Now the homebuyers will not have an extra burden of accrual of interest over these three months. As we know that this three-week India shutdown is the most far-reaching measure by any government worldwide to curb the COVID-19 pandemic. However, it has stalled all businesses and this will resultantly have effects over most of the earning Indians. Thus, waiver of interest will ensure that homebuyers are not overburdened during this situation of crisis. However, there are several other issues like the applicability of holding charges during the period on which no clarity has been provided by the company.
Conclusion
Though the step taken by Parsvnath Developers along with its associate companies must be appreciated. It must also act as a catalyst for the other real estate companies to come forward with similar proactive measures. Therefore, to ensure the faith of the homebuyer remains in the real estate industry it is pertinent that the beneficiaries, stakeholders and the government should hand in hand in order to get past this COVID-19 crisis.
Disclaimer – The above article is based on the order and interpretation of related laws, for general awareness. The readers are expected to take expert opinion before reliance on the article. For any clarification, please read at support@centrik.in
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