MUMBAI, June 2, 2015: Hailing the RBI’s announcement of repo rate cut by 25 basis points, Mr.Lalit Kumar Jain, CMD, Kumar Urban Development Ltd and former Chairman CREDAI said steps like these are gradational in renewing the zest of the real estate sector.
However, he regretted that the net effect has to be translated into an interest rate cut that has not happened as yet. Despite the RBI cutting the repo rate by 75 basis points in recent past, the net reduction by banks has not been more than 25 -30 points.
He appealed to the central government to aggressively go in for dynamic policy reforms to give the much needed boost to realty sector.
He urged the government to take cognizance of the fact that Rs six lakh crore worth of real estate stock has remained unsold. The sale of this stock will only prove beneficial to the government as more than Rs two lakh crores will come to the central, state and corporation coffers for development work through direct and indirect taxation, cess and charges.
“It’s about time the government revisits the actions like the one the NDA Government took in 1998 in order to fast track India’s growth story,” he said and suggested special tax free housing bond at 5% and granting home loans at 7%.