New Delhi: Industry body Assocham urged the government to review the draft of Real Estate Regulator Bill, saying the provisions are harsh and inimical to the sector. “Contrary to expectations, the draft Bill does not allow real estate regulator to act as an impartial arbitrator between industry/developer and various government agencies on one hand, and the industry/developer and consumers on the other,” Assocham said in a statement.
It said that while the Bill has provision of penalties for developers in case of delays, but it is silent on “addressing the inevitable delay and harassment that accompanies various approvals, making their timelines im- possible to adhere to”.
“Assocham has suggested review of the Real Estate Regulator Bill in its current shape since many of its provisions are harsh and inimical to industry and stakeholders concerned,” it added. The industry chamber said the government should launch a debate on provisions of the existing regulator bill so that its harsher sections are diluted with a consensus approach.
“It reintroduces the license raj, which is an anathema in this post-reform age. The terms, too, are stringent. The licence is valid only for three years, while the various approvals for a project from a slew of government agencies alone take up to 18-24 months,” Assocham secretary general D S Rawat said.
With SBI keeping its teaser rate unchanged, mortgage major HDFC too left its rates unchanged. The home finance major said it would extend its dual rate offering till the end of March 2011, with the rate till March 2011 fixed at 8.25 per cent. From April 1, the rate will be fixed at 9.25 per cent for the next one year. Thereafter, the home loan customer will move to a floating rate structure at the rate effective for the amount of the loan, called card rate, from April 1, 2012.
At present, under the card rate, for loans of up to Rs 30 lakh, HDFC customers are charged at 9 per cent per annum while for loans of above Rs 30 lakh they pay at the rate of 9.25 per cent per annum. “The fixed rates are applicable for all new home loans irrespective of the loan amount,” a release from HDFC said.
“This special offer is applicable to all new home loan customers who apply before August 31, 2010 and take at least part disbursement before September 30, 2010,” the release added.
Last week, SBI said that it would continue with its 8 per cent home loan product till September. Under this scheme, State Bank of India offers home loans at 8 per cent per annum for the first year and 9 per cent for the second and the third years.
After the end of the third year, the home loan customer moves to the prevailing interest rate at the time of such a shift. From the fourth year onwards, the rate will be linked to SBI’s base rate, and the effective rate is 9.25 per cent for loans upto Rs 50 lakh and 9.75 per cent for loans above Rs 50 lakh, a release from the bank said.
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