NHB looking at all aspects of EMI waiver: MD & CEO Kalyanaraman

EMI waiver is a major demand of homebuyers invested in real estate projects against which insolvency proceedings are currently on.

The National Housing Bank is examining the issue of EMI waiver, a major demand of troubled homebuyers who have invested in real estate projects against whom insolvency proceedings are currently on.

“We are looking at it from all aspects. Will an EMI waiver solve the issue at this point, we are not sure. We are looking at all the aspects because EMI waiver may have an impact on other sectors as well,” Sriram Kalyanaraman, MD & CEO, National Housing Bank (NHB) told

A few weeks ago, homebuyers, who had invested in embattled real estate group Jaypee, had sought a moratorium on their existing home loans and had written to the banks asking that EMIs should not be deducted till such time that a resolution was hammered out on the delivery of flats. The banks, however, have said that they require the approval of National Housing Bank (NHB) before agreeing to it, lest the loans are classified as non-performing assets.

“…till the commencement of insolvency proceedings, there has not been a single default and all of us have serviced the loan regularly. We are all law-abiding citizens who have no intention of committing any default with regard to the home loan. However, in the peculiar facts and circumstances, it is only appropriate that there is a moratorium on the EMIs till the time there is any clarity on the entire issue and no penal interest is levied on the unpaid EMIs. Since matter is pending before the Honourable Supreme Court as well as before the NCLT, we are hopeful of an early resolution,” homebuyers, who had invested in Jaypee Infratech Ltd and Jaypee Associates, had written in a letter to banks.

“You are, therefore, requested to instruct your branches not to raise any further demand for the time being and keep the EMIs in abeyance and not to charge penal interest on the unpaid EMIs till there is some clarity on the issue of possession/refund with regard to the projects of Jaypee. Kindly do not treat the non-payments as defaults but only a necessary outcome of the peculiar circumstances and the present scenario,” they said in a letter written by their counsel.

Keki Mistry, vice chairman and CEO of HDFC said, “I don’t know. Nothing has come to me yet. Also, for any moratorium, we need the NHB to approve it. Theoretically, even if we approve it, the NHB has to agree to it. Otherwise, we will have to classify it as NPAs.”

This week, a section of homebuyers waiting for delivery of flats in Noida and Greater Noida had written to finance minister Arun Jaitley, requesting that they are spared from paying instalments to banks until their houses are handed over. “We are already paying rents and each year, the rents are increasing. The builders have taken 95 percent of the total payment. We have made an appeal that until we get outhouses, the banks should be asked not to take EMIs. This will take some financial pressure off the buyers,” said Abhishek Kumar, president of Noida Extension Flat Owners Welfare Association (Nefowa) in a letter to the finance minister.

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