Piyush Goyal Criticizes Realty Developers
Union minister of commerce and industry Piyush Goyal came down heavily on real estate developers telling them that many continue to hold on to high-priced inventory despite several reminders. Goyal said builders have no choice but to construct and sell projects at reduced and realistic prices, without waiting for the market to improve. The Union Minister of Commerce & Industry has advised real estate developers not to wait for the market to improve. The government is trying to offer some concession in ready reckoner rates, but even if that does not happen, he suggested that developers will have to sell. He also reminded developers that those who have sold the inventory, leveraged less or got rid of their bank loans have survived the downturn, while those who are saddled with large loans and kept holding onto their price have suffered. According to Goyal, developers will have to make a choice whether to be stuck with inventory, default with the banks and then the material goes away. Or they can chose to get rid of whatever is bought at high prices and look at it as a bad decision or an unfortunate situation and move forward.
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