By Accommodation Times Bureau
MUMBAI, June 18, 2012: CREDAI national President Mr Lalit Kumar Jain has expressed his disappointment at the RBI maintaining status quo in its credit policy.
RBI appears to be sadly ignorant of the importance of real estate sector in the national economy and GDP, Mr. Jain, who is also the Chairman and Managing Director of Kumar Urban development Limited (KUL) said.
He pointed out that the capital and labour intensive sector plays a key role in employment generation and accelerating growth.
He recalled that the encouragement given to real estate in 1998 had kick-started the growth of cement and steel industries along with over 165 other industries including transport that with no additional cost incurred by the government.
The risks attributed to real estate and the RBI advisories against lending to real estate have only harmed the sector and made housing costlier for consumers, apart from badly impacting the economy. The governments at various levels have been losers on revenues.
The status quo on interest rates will further dampen the sentiment though RBI may justify its action. “I hope further policies will see rate cuts positively and conservatism does not become a lasting attitude,” Mr Jain added..
Mr.Paras Gundecha, President of MCHI, expressed his disappointment at the RBI maintaining status quo in its credit policy. It seems the RBI is undermining the importance of real estate sector in India’s economy and GDP. The real estate sector plays a vital role in generating employment opportunities and accelerating the growth of the nation. Being the financial hub of the country, the real estate sector in Mumbai will be negatively impacted by RBI’s status quo on credit policy
Mr. Shailesh Puranik, Managing Director, Puranik Builders Pvt. Ltd, said “Reserve Bank of India’s (RBI) credit policy failed to bring cheers to the overall sluggish trend in the real estate sector, as the central bank did not make any change in its key rates contrary to the expectations.
Real estate sector was expecting further cut in the CRR and Repo rates in order to infuse confidence in the already challenging market scenario.
The central bank has maintained its cash reserve ratio (CRR) of scheduled banks unchanged at 4.75, while keeping its policy repo rate the same at 8.0 per cent.
We are hopeful of some positive steps by the RBI in the future to strengthen the overall market sentiments in the real estate sector, which has been engaged in generating greater employment across the country”