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For Real Estate Bailout, Credai Writes To Bengal CM

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Additionally, builders want the West Bengal government to bring down the stamp duty on property transactions to 5% from 7% for at least a year to boost sales.

Property developers in West Bengal have sought from the state a bailout package, including tax waivers and temporary cuts in stamp duty, after the debt-heavy industry ground to halt due to the Covid-19-induced lockdown. 

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

Additionally, builders want the West Bengal government to bring down the stamp duty on property transactions to 5% from 7% for at least a year to boost sales.

“We pray for these measures only on a temporary basis until March 2021, which will ensure continuity of the sector with minimal impact to the government revenues,” said Sushil Mohta, president CREDAI-West Bengal.

The real estate association has also requested the West Bengal Housing Industry Regulation Authority (WBHIRA), the state regulator, for a 12-month extension on delivery of projects under ‘force majeure’. 

“Revenue generation has come to a grinding halt. With each passing day, the losses are piling up, giving rise to the possibility of bankruptcy and complete breakdown of the real estate industry,” said Mohta. 

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

Property sales across India have come to a standstill after the coronavirus outbreak. It has hurt residential sales and also dented the leasing of commercial assets across the country, leading to a severe liquidity crunch for the builders.

ALSO READ: Godrej Properties Sees Strong Sales Despite COVID-19

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