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Here are some reactions of realtors on RBI’s policy outcome on realty sector

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The Reserve Bank of India on Wednesday raised the key lending rate or repo rate by 50 basis points to 4.9 per cent to tame rising inflation, which has been now above the central bank’s 6 per cent tolerance level for four months in a row.

Repo rate is the rate at which the central bank lends short-term funds to banks.

In line with the rate hike by the RBI, some banks and non-banking finance companies too had raised their lending rates, which will essentially lead to an increase in EMIs for borrowers.

On Wednesday, RBI decided to increase the existing limits on individual housing loans by cooperative banks.

Accordingly, the limits for Tier I or Tier II urban cooperative banks shall stand revised from Rs 30 lakh or Rs 70 lakh to Rs 60 lakh or Rs 140 lakh, respectively, which essentially means doubling of the limit.

The increased limits will apply for Primary (Urban) Co-operative Banks (UCBs), and Rural Cooperative Banks (RCBs) — State Cooperative Banks and District Central Cooperative Banks.

For RCBs, the limits will increase from Rs 20 lakh to Rs 50 lakh for such banks with assessed net worth less than Rs 100 crore; and from Rs 30 lakh to Rs 75 lakh for other such RCBs.

Besides, considering the growing need for affordable housing and to realise their potential in providing credit facilities to the housing sector, the RBI decided to allow State Co-operative Banks (StCBs) and District Central Co-operative Banks to extend finance to Commercial Real Estate – Residential Housing (CRE-RH) within the existing aggregate housing finance limit of 5 per cent of their total assets.

Following are some of the reactions from real estate experts and developers on the RBI’s measures:

Rohan Pawar, CEO of Pinnacle Group said, during the pandemic, the low interest rate regime had boosted the housing demand, and RBI’s decision to hike the interest rate again by 50 basis points to 4.90 per cent was expected to tackle the tight inflation of the country.

“The increase of rates could adversely affect housing demand because of increased EMIs and lower eligibility on home loans. This will create an impact on the ongoing growth momentum in the sector in addition to increasing input costs. However, we still believe that preference of homebuyers for owning a home will continue to boost demand.”

Niranjan Hiranandani, Vice Chairman of NAREDCO said, taming steep inflation hike is a preordained measure by RBI, given the global economic ballgame. Soaring commodity prices especially with food and energy prices, plummeting currencies, supply side shocks are the foremost reasons for rising input cost.

“It is evident that home loan interest rate hike will impair the home buying rally as pay out in terms of EMI is scheduled to rise. But according to me this crater in demand sentiment is a makeshift move, as home loans are based on floating rate for a long tenure. The EMI constraint will be eased as rates are expected to normalise once the global situation is stabilised.”

The hike in the limit of individual loans by co-operative banks by 100 per cent is a welcome initiative for home buyers who opt for home loans from co-op banks.

Atul Goel, MD of Goel Ganga Group said, the RBI’s step to increase the repo rate has been on the expected lines. To curb inflation, the regulatory bodies in India were required to control liquidity circulation in the economy. For a few months, the inflation rate has been above 6 per cent, which is beyond the RBI’s safe zone.

“If not controlled, the inflationary pressure could destabilise an otherwise bullish Indian economy. Although the recent step will increase the home loan rates, an unstable economy is not conducive to the overall health of the real estate industry. For the industry to operate optimally, it is important that the economy continues to grow in a stable, inclusive, and steady fashion.”

Suren Goyal, Partner at RPS Group said, the group welcomes the step of the apex body to increase the overall repo rates and believes it will help in clamping down inflation and smoothen economic growth.

“A rise in inflation can soften the stance on an otherwise robust real estate industry. Already raw material prices are increasing and an unbridled rate of inflation will further drive the input costs northwards, therefore resulting in cost overruns for the developer fraternity.”

Manoj Gaur, CMD of Gaurs Group and President- CREDAI NCR said it has been a fine balancing act by RBI.

“We understand that the hike in repo rate by 50 basis points will impact interest rates of consumer loans and make home loan dearer right at the time when real estate sector was coming out of the throes of pandemic and affect sales in the short term. However, by reining in inflation it will ultimately benefit the real estate sector that is bogged down by high input costs.”

Amit Modi, President of CREDAI Western UP opined that the increase in the repo rate will hamper the sentiments of the buyers, especially first time home buyers who are heavily reliant on home loans.

“It will be a barrier to the growth trajectory of the revived sales post-Covid. Millions of homebuyers will be sidelined and alienated from the property markets after the hike. It will slow down the pace of sales that has taken a rise in the recent past.”

Pradeep Aggarwal, Chairman of Signature Global (India) said the repo rate hike could be termed as a reformative move, the stated aim was clear in current macro and micro economic conditions.

“There was no other option left but to rein in inflation through monetary control measures. This might slightly influence real estate, but it will not impact consumer confidence or demand. Simultaneously, increasing the 100 per cent limit of individual loans by apex bank for co-operative banks, would surely spread a positive communication among each stakeholder.”

Sanjay Sharma, Director of SKA Group said the repo rate hike comes at the time when there was a renewed buyer interest in every segments of the real estate

“This move will definitely have an impact on buyers’ sentiments but at the same time let’s wish that the step brings the expected relief and benefits the sector that is also reeling from high input costs on account of various factors including inflation.”

Dharmesh Shah, CEO of Hero Homes said that there will also be a certain increase in home loan rates that will backtrack home buyers’ aspirations to invest in property markets and impact residential sales for a short period of time.

Prateek Mittal, Executive Director at Sushma Group said the latest move will definitely help the country as well as benefit the real estate sector that is already battling high input costs on account of various external factors and the consequent increase in fuel cost.

“Though this increase will also impact the buying power of consumers, we feel the impact will be taken in stride.”

According to Sharad Mittal, Director and CEO of Motilal Oswal Real Estate Funds: “Now with mortgage loan rates set to go up, we may notice a slight demand blip in the short term but overall outlook on the sector remains strongly bullish in the long term.”

“In an interesting move, RBI has now allowed rural co-operative banks to lend towards residential housing projects. This will help improve much-needed liquidity in the sector.”

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Bengal school jobs case: SC upholds cancellation of over 25K appointments, modifies Calcutta HC directions

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New Delhi, April 3: The Supreme Court on Thursday upheld the Calcutta High Court’s order cancelling 25,753 appointments in teaching and non-teaching posts made by the West Bengal School Service Commission (WBSSC) in 2016.

Disposing a batch of petitions, including the West Bengal government’s appeal, a Bench of Chief Justice of India (CJI) Sanjiv Khanna and Justice Sanjay Kumar made certain modifications in the directions issued by the Calcutta High Court.

“The credibility and legitimacy of the selection procedure is denuded. Accordingly, we have proceeded to made some modifications in the directions issued by the Calcutta HC,” the apex court said.

It added that the challenge to the CBI probe into the creation of super-numeric posts by the West Bengal government will be listed for hearing on April 4.

On May 7, 2024, a Bench headed by then CJI D.Y. Chandrachud stayed the operation of the impugned order passed by the Calcutta High Court cancelling school jobs.

The then CJI Chandrachud-led Bench had allowed the Central Bureau of Investigation (CBI) to continue with its investigation into the alleged scam but restricted the agency from taking any coercive action against the candidates or officials.

In an order passed in the third week of April 2024, the Calcutta High Court nullified the appointment of the candidates selected from the expired panels and asked them to return the entire salary drawn during their tenures, along with an annualised interest of 12 per cent, within the next four weeks.

Besides directing the WBSSC to initiate the recruitment process afresh, a Division Bench of Justices Debangsu Basak and Shabbar Rashidi of the Calcutta HC also directed the probe agency to carry on with its investigation into the matter.

Taking cognisance of the state Cabinet’s decision for the creation of super-numeric posts, it had said that the CBI, if necessary, can question the masterminds behind the creation of the seats in excess of the vacant posts.

These super-numeric posts, which have remained under the cloud since the beginning, are perceived to provide room for ineligible candidates recruited illegally.

In July 2023, the apex court had set aside an interim direction passed by the Calcutta High Court terminating the service of 32,000 primary teachers and asking the West Bengal authorities to complete the recruitment process for the newly-created vacancies within three months.

Asking the Calcutta High Court to decide the appeal pertaining to the school-jobs-for-cash scam at the earliest, the Supreme Court had stressed that the opportunity for a hearing has to be given to all concerned.

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BJP leader Amit Malviya explains key insertions in Waqf Bill

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New Delhi, April 3: BJP leader Amit Malviya has elaborated on the implications of key insertions in the Waqf Amendment Bill, highlighting major changes aimed at protecting historical monuments and tribal land rights.

Taking to the social media platform X, Malviya shared a detailed explanation of the amendments.

“One of the significant insertions in the bill, Clause 3D, states: Any declaration or notification issued under this Act or under any previous Act in respect of waqf properties shall be void, if such property was a protected monument or protected area under the Ancient Monuments Preservation Act, 1904 or the Ancient Monuments and Archaeological Sites and Remains Act, 1958, at the time of such declaration or notification,” he wrote on X.

Explaining its impact, Malviya stated that ASI-protected monuments have now been excluded from the Waqf’s ambit.

He emphasised that since the Archaeological Survey of India (ASI) is merely a custodian, protected properties may not necessarily be government assets.

“Another key amendment, Clause 3E, reads: “Notwithstanding anything contained in this Act or any other law for the time being in force, no land belonging to members of Scheduled Tribes under the provisions of the Fifth Schedule or the Sixth Schedule to the Constitution shall be declared or deemed to be waqf property,” he said.

Malviya highlighted that this provision ensures the exclusion of tribal land from Waqf’s jurisdiction, thereby protecting the interests of tribal communities and preventing land encroachment.

He noted that this issue has been particularly pressing in states like Jharkhand and other tribal-dominated regions.

“This is a major step in protecting Tribal rights, benefiting Bengal’s Tribals and many others,” Malviya remarked.

The amendments in the Waqf Act have sparked discussions across political and social circles, with proponents asserting that they safeguard historical heritage and tribal communities.

Earlier, addressing the Lok Sabha on Wednesday, Union Home Minister Amit Shah, asserted that misconceptions about the Waqf (Amendment) Bill were being deliberately spread by certain parties to bolster their vote banks.

He said that the proposed legislation was in line with fulfilling the wishes of RJD chief Lalu Prasad, something the opposition had failed to do.

The Home Minister explained that the new law might not have been necessary had the Waqf (Amendment) Act of 2013, passed under the Congress-led UPA II government, not been rushed through just months before the 2014 Lok Sabha elections.

At that time, Lalu Prasad, whose party had been part of the ruling coalition before withdrawing and later offering support, had raised concerns about the state of Waqf properties.

Quoting Lalu Prasad, HM Amit Shah said: “We welcome the amendment bill presented by the government. I support the statements made by (BJP’s) Shahnawaz Hussain and others. Most of the land has been grabbed, be it government-owned or otherwise. People in the Waqf Board have sold all the prime land. In Patna, apartments have been constructed on Dak Bungalow property. There has been a lot of loot like this.”

The Home Minister also reiterated that the Waqf (Amendment) Bill, 2025, was not aimed at any particular religion and that the Congress and other opposition parties were spreading misinformation about the bill to serve their vote-bank politics.

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After LS nod, Waqf Bill to be presented in Rajya Sabha today

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New Delhi, April 3: After the Lok Sabha passed the Waqf (Amendment) Bill, 2025, it will be tabled by the government in the Rajya Sabha on Thursday.

The Lok Sabha intensely discussed the bill for more than 12 hours, which began at Wednesday noon and continued till the early hours of Thursday. The Waqf Bill was passed with 288 votes in favour and 232 against.

Apart from the Waqf bill passage, a resolution was adopted by the Lower House confirming the President’s Rule in Manipur.

As per the Business List for Thursday, Union Home Minister Amit Shah will move in the Rajya Sabha the Statutory Resolution confirming the imposition of President’s Rule in Manipur.

HM Shah will “move the following Resolution – that this House approves the Proclamation issued by the President on the 13th February 2025 under Article 356(1) of the Constitution in relation to the State of Manipur.”

The Lok Sabha early Thursday passed the Statutory Resolution confirming the imposition of President’s Rule in Manipur. Even though members across party lines supported the decision, some opposition members slammed the Centre for the situation in Manipur. HM Shah said that the government has taken every possible measure to bring back normalcy in the restive Northeastern state.

Minister Dr Chandra Sekhar Pemmasani will lay a statement regarding the withdrawal of funds from the Contingency Fund of India for servicing Interest on Sovereign Guarantee Bonds (SGBs) raised by Mahanagar Telephone Nigam Limited (MTNL).

In the Lok Sabha, the Coastal Shipping Bill, 2024, will be put up by Minister Sarbananda Sonowal for consideration and passing. The motion was moved by Sonowal on April 1, namely – “That the Bill to consolidate and amend the law relating to regulation of coastal shipping, promote coasting trade and encourage domestic participation therein, to ensure that India is equipped with a coastal fleet, owned and operated by the citizens of India for its national security and commercial needs, and for matters connected therewith or incidental thereto, be taken into consideration.”

Minister Rammohan Naidu Kinjarapu will move The Protection of Interests In Aircraft Objects Bill, 2025, for consideration and passing. The Bill seeks to “provide for protection of interests in aircraft objects and to implement the Convention on International Interests in Mobile Equipment and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, each signed at Cape Town on 16th November, 2001.”

Minister Manohar Lal Khattar will make a statement in the Lower House regarding “the status of implementation of the recommendations contained in the 10th Report of the Standing Committee on Housing and Urban Affairs on PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) pertaining to the Ministry of Housing and Urban Affairs”.

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