In a meeting held on last Saturday with
chiefs of government-owned banks, the finance minister P. Chidambaram asked
them to put pressure on realtors to lower property prices to keep the economy
going.
Finance minister emphasized on the role of
realtors in the economy saying that only banks should not lower interest rates
on home loans to keep the economy going, builders should also lower property
rates. He pointed out builders have huge unsold inventories (close to 5 lakh
flats are lying vacant) which they are not able to sell due to prevailing
prices.
"A huge quantum of
capital is locked. Why are banks not putting pressure on them (builders) to
lower prices since you have funded both the builder and the retail home
loan borrower,"
he told bankers. He even mentioned that borrowers should demand possession
immediately as per schedule.
However CREDAI counter
attacked Finance Ministry by asking relevant relaxations to lower down the
price.
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