Interim Budget 2024 – PMAY News:

India’s commitment to affordable housing received a significant boost with Finance Minister Nirmala Sitharaman‘s announcement in the Interim Union Budget 2024-25. The government has earmarked Rs 80,671 crore for the Pradhan Mantri Awas Yojana (PMAY), a flagship scheme that epitomizes the nation’s ‘Housing for All’ vision.

This enhanced allocation, up from the previous budget’s Rs 79,590 crore, highlights the government’s resolve to address the urban housing crisis. PMAY, since its inception in June 2015, has been pivotal in providing ‘pucca’ houses with essential amenities to eligible beneficiaries, primarily targeting low and middle-income groups.

In an innovative move addressing the housing needs of the middle class, a section often caught in the housing affordability gap, the government plans to roll out specific schemes. This initiative will assist those living in rented accommodations, slums, chawls, or unauthorized colonies, enabling them to purchase or construct their own homes.

The Budget’s highlight is the ambitious target of setting up two crore affordable houses over the next five years. This target builds on the success of PMAY-Gramin, which has been close to achieving its three-crore rural housing goal despite COVID-19 challenges.

A notable aspect of PMAY-Gramin is its focus on empowering women, with 70% of the houses being allocated to female beneficiaries. The scheme offers financial assistance of Rs 1.20 lakh in plain areas and Rs 1.30 lakh in hilly regions, shared between the central and state governments in a 60:40 ratio.

As the nation gears up for sustainable development and improved productivity, the Budget’s focus on housing is strategic. By ensuring affordable housing, the government aims to enhance living standards and foster inclusive growth.

The PMAY’s extension to December 31, 2024, to complete sanctioned houses by March 31, 2022, is a testament to its ongoing commitment. This move is expected to address the urban housing shortage effectively and promote homeownership, especially among women.

For more information on PMAY and its various facets, visit the official website here.

In conclusion, the Interim Budget 2024 marks a significant step in India’s affordable housing journey. By bolstering PMAY and introducing targeted schemes for the middle class, the government renews its pledge towards ‘housing for all,’ ensuring that every Indian has a place to call home.

Pro tip: If you are planning to buy or construct a new home in 2024, then you can get a home loan interest subsidy of up to Rs. 2,67,000 under the PM Awas Yojana. Check your eligibility with our PMAY Subsidy Calculator.

The Coronavirus (COVID-19) has affected everyone. Its effects are now being felt in the economy, automobiles, manufacturing, and more.

In the wake of COVID-19, the Government has already announced Rs.20 lakh crore packages. The RBI has also announced the extension of the loan moratorium to 31 August 2020. It has also slashed the repo rate twice to make loans affordable.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has come up with the force majeure. It now offers a COVID-19 harmed period from 15 March to 14 September 2020. Force majeure is a provision that offers short-term relief to a party from performing its sure-shot duties while under a contract. It is being seen as a nice move to ease Covid impact on real estate. 

The Pandemic has seen laborers reverse their migration to their hometowns, breaking the supply chain of construction materials. Hence, it is severely affecting the pace of real estate activities in Maharashtra and elsewhere.

MahaRERA has created this facility as the state has 25,000+ registered real estate projects, the highest number in India.

Under sections of MahaRERA, any registration of sale agreement due after 6 months can be extended beyond the period of Majeure.

Also, the possession date, as mentioned in the agreement, will be extended until this period is over.

Homebuyers can also demand any refund but after 1-month post the completion of the moratorium period.

While it is good news for realtors, Mumbai Grahak Panchayat has expressed concerns about safeguarding homeowners’ interests.

“It’s dubious if the interest of this force majeure is being given to realtors whose projects are already delayed. What if the builder is unable to give possession even after 1-month post this moratorium period is over. In such cases, homebuyers must not be denied interest in the ongoing lockdown period.” Shirish Deshpande, the Chairperson of the Mumbai Grahak Panchayat, was quoted as saying on the development.    

Shirish went on to state that MahaRERA has a duty to ensure that real estate does not take undue advantage of this relief. He also questioned the shield MahaRERA gives to homebuyers who are suffering from paying EMIs.

Deshpande also stated that realtors are not obliging. This is because many have stopped paying rent to rehabilitation members. He wanted MahaRERA to clarify this so that the interests of the homebuyers were also protected.

Advocate Naheed Carrimjee also shared his opinion on MahaRERA’s announcement of this resort. Here is what he has to say about the measures taken to ease COVID-19’s impact on real estate. “This (force majeure) may be in favor of both homebuyers and developers. But that should not be taken as an excuse by builders to delay rents to tenants in redevelopment projects.”

The ball is now in MahaRERA’s court. It should safeguard the interests of both parties in this unprecedented situation due to the Pandemic. 

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