CREDAI Bengal Asks CM for Real Estate Support Package

Property developers in West Bengal have asked from the state government a support package including tax waivers and temporary cuts in stamp duty after the indebted industry set to stop due to the Coronavirus forced lockdown.

The Confederation of Real Estate Developers Associations of India (CREDAI-West Bengal chapter) has urged for a waiver of municipal tax and the property tax for the lockdown period. It has also asked an extension of the validity of all sanction plans by 12 months and halt of sanction fees on new projects.

Besides, builders want the West Bengal government to reduce the stamp duty on property transactions to 5% from 7% for at least a year to increase housing sales. The real estate association has also requested the state regulator, the West Bengal Housing Industry Regulation Authority (WBHIRA), for a 12-month extension on projects delivery under ‘force majeure’.

President CREDAI-West Bengal, Sushil Mehta also stated that revenue generation has also come to a crumbling end. The losses are increasing with each passing day that may give rise to the possibility of bankruptcy and the complete collapse of the real estate industry in the city.

It has also sought reduction by 20% in circle rate in all residential properties and 30% in all commercial and mercantile built-up space.

Real estate sales across India have come to a halt after the coronavirus pandemic. It has damage residential sales and also depresses the leasing of commercial assets across the country that leading to a sharp liquidity crisis for the builders.