How migrant labour of our country get back to work?

As India enters 4.0 lockdown, the Narendra Modi led government is looking in every possible way to slowly resume economic activities. The Center has withdrawn its lockdown directive and only broad central guidelines and allowed states to follow their strategies for the gradual establishment of the economy. Therefore, the Modi government will have to come up with a big financial package, which will put money in the hands of the people so that they start spending on their essential needs.

To do this, workers must be assured that precautionary measures have been taken that require a strong message. In addition, the transport service is also required to return to the workplace with all health protocols, including facilities for daily commuting.

The migrant labor population is widely engaged in the transport, construction and MSME sectors. Getting them back to work is a challenge as we get out of lockdown but we have to assure them of their safety and health. Most people want to return home due to uncertainties combined with fear. The industry can play a major role at this time. State governments have started working towards restructuring the economy to allow for a regular job or assisted living which in turn will help them earn income and reduce savings after one month of lockdown.

The basic minimum living conditions will encourage them to return to work quickly. Authorities are working with skill occupations in the states, which map the skills of available laborers and accordingly ensure that they reach the nearest places where these skills are required in the industry.

Some economic activities, such as construction, may still require local labor from non-containment areas, and initially in small numbers. In rural areas, long-distance demand and supply chains of essential commodities are being opened through digital platforms by some state governments. But both central and state agricultural agencies will need to coordinate with district-level marketing boards to reroute supply chains to organized retail chains in cities and towns.

The government is required to play the role of a market proponent to improve economic duration. Manufacturing and construction companies have to get on track with better credit availability. Once manufacturing and manufacturing improve, more jobs will be possible. Better credit for companies will add liquidity to the economy.

RBI extends EMI moratorium - latest update

As India struggles to get back on its feet in the rest of the world, the Reserve Bank of India is exploring ways to make the life of the common man less stressful.

The first EMI moratorium was announced on 27 March 2020 and was to cover debt repayment between March 1 and May 31. As the COVID-19 pandemic still continues, it was clear that postponement expansion was needed. That is why today (22 May 2020), RBI Governor Shaktikanta Das extended the moratorium on loan repayment saying - “In view of the expansion and continued disruption of lockdown due to COVID-19, the decision to allow lending institutions has been taken. From June 1 to August 31, 2020, another three months to extend the moratorium on term loan installments.

How does an extended EMI moratorium help?

About 122 million people lost their jobs due to the outbreak of COVID-19. To add to this, self-employed individuals are struggling to make ends meet due to loss of income during the epidemic. If you are wondering, about 51% of India's workforce is self-employed! This means that a large part of India's working population is now finding it difficult to manage its expenses and pay back its debts.

The additional 3-month extension would provide some much-needed relief to these individuals. They will now be able to take out their loans such as car loans, home loans etc. If they miss an EMI payment then they run the risk of negatively affecting their credit score.

Now that the loan is deferred for 3 months, and money is not deducted from their bank accounts, most people will have little money to watch them until things start appearing.

Important points to keep in mind about EMI moratorium

Although the RBI EMI moratorium is good news for many people, what should you know here-

· The EMI moratorium is not a mandate, it is a competent provision. Banks have the right to decide whether they want to follow it or not. Individual banks will also be allowed to decide whether this moratorium will be extended to all borrowers.

· If you have decided to avail the moratorium, the EMI will be extended with interest applicable to your outstanding principal amount during the unpaid time. This will increase your overall interest cost. If you have the money to manage your loan EMI, it is best to stick to the original repayment schedule, especially if you have a notable outstanding loan amount for a loan against a home loan or property.

· The moratorium prevents payments for principal and / or interest components; Bullet repayment; Equal Monthly Installments (EMIs) and credit card dues.

Repo rate reduction

Apart from announcing the moratorium, RBI also announced a drastic reduction of 40 basis points in the repo rate to 4%. The reverse repo rate has also been reduced by 40 basis points to 3.35%.

Repo rate is the interest rate that RBI charges for the funds to be given to banks. This drastic reduction in repo rates will also reduce the lending rates to banks. Lower lending rates will give people hope to think about reinvesting. It is also said that EMI will come down on home, auto, personal and term loan rates in the near future.

RERA project deadline to bring relief to developers, relaxation to house buyers interests

Although MSMEs, NBFCs and HFCs were the main focus of the Finance Minister's address, the real estate sector also received a major boost from the announcements made by Nirmala Sitharaman on Wednesday. Giving a major relief to real estate developers, FM extended the timeline for completion and registration of the project by 6 months.

The move will help the developers immensely as construction activity is grinding across the country. The wait for house buyers gets a bit long, but it was inevitable.

Including COVID-19 in the definition of “Force Measure” or “Act of God”, and the State / UT Regulatory Authority to revise the lawsuit on the moto and the date of registration and completion of projects by 6 months, in advance there is a boost for the sick. It is slated to combat disruption caused by epidemics. "This will not only provide more time for the project to be completed without any obligation for delay in completion of the project, but also prevent them from facing legal matters due to delays limited to this 6-month extension window. Will give,” a tax expert said.

While COVID-19 dissemination has been challenging for many sectors, including real estate, with many research reports in this area it appears encouraging that real estate is still considered the best investment option. This will be further strengthened by the Finance Ministry with various liquidity measures that will help reduce the rigidity currently being seen in the Indian real estate market.

In addition, the announcement of Rs 30,000crore special liquidity plan for NBFCs / HFCs and MFIs will ease the liquidity misery of stressed stakeholders. This would greatly benefit the real estate sector, given that NBFCs and HFCs are its main lenders.

Karnataka minister announced no landlord should take rent during lockdown

R. Ashok, a revenue minister from Karnataka, said that landlords could not charge rent from tenants during the lockout. He said that action will be taken against the landlords if they force the tenants to vacate the property due to non-payment of rent.

"In this epidemic situation, action should be taken against the house owners in which owner can be imprisoned for up to one year or more under the National Disaster Management Authority," as he said.

However, if the order was not only for tenants belonging to economically weaker sections or people of the society, it did not make it clear.

Although the relationship between a tenant and an owner falls under the Karnataka Rent Control Act, 2001, the government may issue an amendment or an ordinance under the Act to chart instructions regarding collection of rent and eviction.

According to tax experts, Fiat can be challenged in court. Ashish K Singh, partner at law firm Capstone Legal, said, "In my opinion, the exercise of powers under the National Disaster Management Act for rent-related disputes would be challenged before the High Court or the Supreme Court." "It is clear that the NDMA's mandate does not cover the relationship between landlord and tenant."

The state government has taken cues from Singapore passing the COVID-19 Act 2020, which allows a tenant unable to pay rent and other dues under commercial leases from rental payment obligations for six months Seeks temporary relief.

According to property brokers, many prospective house buyers have postponed their plans to buy the property, which has boosted demand for rented houses in Bangalore.

Potential house buyers are expected to moderate prices and home loan rates.

India Prime Minister Announces Rs 20 Lakh Crore Incentive to Combat Corona virus Fallout

Prime Minister Narendra Modi announced a stimulus package of Rs 20 lakh crore to support the economy after the Corona virus crisis on May 12, 2020.

As India planned to enter the fourth phase of lockdown from May 12, 2020, to prevent the number of coronovirus infections, Prime Minister Narendra Modi announced on May 12, 2020, Rs 20 lakh crore to support the economy. Announced an incentive package. Narendra Modi extended the lockdown in India until May 30, with some ridership as Asia's third-largest economy attempts to mitigate the widespread damage caused by the epidemic.

In the coming times, Finance Minister Nirmala Sitharaman will provide details of the mega package, which is one of the world's most important stimulus packages against the epidemic. While Japan has announced a $ 992 billion coronavirus relief package that accounts for more than 21% of its GDP, the $ 2 trillion stimulus package announced by the US serves about 13% of that country's GDP.

India's support measure is likely to focus on tax breaks for small businesses and incentives for domestic manufacturing. Being the second largest employer in the country, real estate can be a major beneficiary of fiscal stimulus, Collier International India said in a statement.

Important is that the new package, which is equivalent to about 10% of India's GDP, includes the first Rs 1.7 lakh crore package announced in March 2020, as well as liquidity measures in various measures initiated by the Reserve Bank and Interest included Rate cut.

Corona virus stimulation package in India

The Center and the Reserve Bank of India (RBI) have announced a slew of measures in the past to support the economy as analysts predict a prolonged national lockdown to counter a corona virus outbreak in India's first-ill. May push economic growth to a three-decade record less.

In India, the number of infections has increased to 81,970, while the number of deaths by May 15, 2020 has risen to 2,649.

After the central government announced a Rs 1.7 lakh crore incentive package to provide direct cash transfers and food security measures to millions of poor people due to the lockdown, RBI announced a 75-basis point shortfall The interest rate, after an emergency meeting through video-conference of its Monetary Policy Committee (MPC) on March 27, 2020, to bring it to 4.40%.

A nationwide lockout that has forced India's 1.3 billion people to live in millions of low-income homes indoors, relying on daily wages to sustain their livelihoods in Asia's third-largest economy, which weakening economic activities in the country is also the weakest and brought many companies to the brink of bankruptcy.

How will corona virus affect the Indian economy?

ICRA states that India's growth fell to a six-year low of 4.7% in October-December 2019 and may decline to 2.4% in January-March 2020. On the other hand, rating agency Moody's projected job losses to accelerate in countries after COVID-19, resulting in widespread loss of income for businesses and individuals.

Tamil Nadu government declare “No registration fee, stamp duty for new apartment”

The welcome move comes shortly after some sub registrar offices demand registration of apartments attracting stamp duty and registration fees.

The registration department in Tamil Nadu has clarified that there is no need to pay stamp duty and registration fees when they are ready to occupy new apartments and buildings. The move comes in the wake of an effort brought in during the COVID-19 crisis and is set to provide some relief for house buyers.

It should be noted that this is only applicable to the first sale of the property.

The Inspector General of Registration  issued an order that defines the Undivided Share (UDS) of a property under the bracket of stamp duty and registration fee.

If a document is submitted for registration for the first sale of an undivided part of the land, the registration authorities are instructed that the subject of the sale document for the sole reason of issuance of completion certificate being competent to the building. Do not demand or urge to be included. A communication from the Inspector General of Registration for Sub-Registrars said.

This will help house buyers save a combined 11% stamp duty and registration fees that they will have to pay for the new apartment.

State Treasurer of the Builders Association of India S Ramaprabhu said that the order is subject to UDS only for stamp duty and registration fee.

For example, the price of a new flat is Rs 60 lakh, out of which UDS is Rs 20 lakh and the remaining Rs 40 lakh is the price of the apartment. House buyers do not require stamp duty and registration fees on the building. This is a welcome step for property buyers in completed projects as it does not attract GST,” he said.

Real estate has not grown well in the last few years due to several policy changes. The current epidemic has also dealt a severe blow to the industry. It is anticipated that the move will boost consumer sentiment and help in faster recovery of the sector.