Piyush Goyal, Union Railways, and Commerce Minister asked the builders to cut down prices and clear the unsold stocks. Further, he advised builders to sell things at any cost because the situation is not going to improve very soon. Piyush Goyal suggested this during a virtual locked door meeting organized by NAREDCO (builders’ body). NAREDCO stands for National Real Estate Development Council.
The video has gone viral on social media. The video was recorded during the online meeting. Further, Goyal is trying to see if some concessions can be allowed. Also, he said that builders have to sell their unsold products at any price if no grants are made. However, the Union Minister left the final decision up to the builders. I cannot be more explicit about it, he added.
No Financial Support From Government
Finally, Piyush Goyal made it clear that the Government is not going to provide any financial support. Further, builders should not keep any expectations from the Government. The Government is not going to enable the builders to store their products and sell their inventory at higher prices when the situation in the market improves.
There is no option other than reducing the rate to clear the unsold stocks. The choice is on the builders to choose between losing material to tha banks or clear the stocks of the products they bought at high prices. Niranjan Hiranandani, the national president of NAREDCO, was also a part of the meeting.
The crux of the problem lies in the decreasing demand for the products under this sector over the last few years. Therefore, the extended solution to this problem is to boost the economic growth and demand under this sector. The movement of ready reckoners rate, taxes, and stamp duties will be very much helpful in converting the requirements associated with housing into sales. Mr. Baijal said chairman & MD of Knight Frank India said that tangible measures are required to resurrect demands and for providing relief to different stakeholders.