Builders Should Have to Pay 10% Interest on Delayed Housing Projects

Are you planning to buy your dream house but thinking about the interest you have to pay? Well, here is good news for you. The Real Estate Regulatory has announced that the interest rate is only 10% for the delayed housing projects. Chairman of Madhya Pradesh RERA, Anthony DeSa said that prescribed rate as against 5 per square feet to 10 per sq ft contracted in the sales agreement. He stated that the currently delayed projects would get registered with RERA only if the developers pay the prescribed buyer interest which is 2% more than SBI’s MCLR (Marginal Cost of fund based Lending Rate) and sign the sales agreement.

Rajiv Ranjan Mishra, Joint Secretary of Housing and ministry at FICCI conference told that 14 states have already implemented this law and 14 more states are about to implement it soon.

The law has already started in the states such as Andhra Pradesh, Bihar, Gujarat, Kerala, Maharashtra, Odisha, Uttar Pradesh, Chhattisgarh, Andaman and Nicobar Islands, Dadra and Nagar Haveli, Daman and Diu, Delhi, Lakshadweep. Regulatory passed strict notifications that the builders have to make their projects certified before May 1st. If they failed to do so, they have to get it done in 3 months. The law got accepted by parliament in March 2016 and came into force on May 1st.