Karnataka Rajeev Chandrasekhar on Monday demanded that the
Centre waive interest on home loans during the COVID-19 ''force
majeure'' period.
He wrote to Union Minister for Housing and Urban Affairs
Hardeep Singh Puri, referring to the April 29 meeting of the
Central Advisory Council, formed as per the Real Estate
Regulation and Development Act (RERA) guidelines.
Puri is also the chairman of the CAC.
The BJP MP pointed out that a decision was taken at the
meeting to provide six months extension for all active RERA
registered projects due to the COVID-19 lockdown and to allow
further extension on special cases after looking into the
merits of each case.
Just as relief is being given to the builders, the
interest of home buyers who are undergoing unimaginable
economic hardships in these unprecedented times of COVID-19
lockdown needs protection, the MP said.
"The interest part on the principal amount of the Loan
during this COVID-19 force majeure period should be waived for
the homebuyers.
For no fault of the buyers, they need not pay both rent
and Equated Monthly Installment (EMI)," the MP said.
''Force Majeure'' clause is a contractual provision that
addresses circumstances in which contractual performance
becomes impossible or impractical due to events that could not
be foreseen, and are not within party''s control.
He insisted that the extension of completion time for
RERA registered projects be for the actual lockdown period
only and that projects should not be delayed for the home
buyers. PTI GMS APR
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