The state housing and urban planning department has decided to waive penal interest on allottees, who could not pay instalments between March 1 and August 31 due to the pandemic. In a directive to development authorities and housing board, principal secretary (housing and urban planning), Deepak Kumar, said, the condition would apply to allottees who pay instalments by September 30.
House allottees in UP would be required to pay normal interest
Kumar said, the decision was taken in sync with Reserve Bank of India guidelines and economic relief packages announced by the Centre. However, allottees would be required to pay normal interest levied by development authorities and housing board. The interest ranges between 9-12%, depending on type of housing property.
Housing department officials said, the waiver comes in backdrop of a similar moratorium given by banks because of the pandemic. “This could be beneficial to those who could not pay dues due to movement curbs during the lockdown. They would not be charged a penal interest on non-payment of instalment, but normal interest will be applicable,” said a senior official in the housing department.
Also, the state government would not give rebate on payment of instalments within 45-60 days if the period falls between March 1 and August 31. The arrangement, the order said, should not be considered as a concession or change in conditions of agreement. “The previous arrangement would continue,” the order said.
The sop comes in midst of a slump in property purchase by potential home buyers even as the demand for housing units registered a significant drop in wake of the lockdown and dip in income levels. Real estate experts said, the real estate sector has been bruised by of the sharp decline in demand.