India's leading housing finance company HDFC on Monday said that it would offer special rates to developers selling on carpet area basis instead of super built-up area.
In places like Bangalore and Hyderabad, the difference between super built-up and carpet area varied to the extent of 40 to 50 per cent, its chairman Deepak Parekh said, adding, "this racket formed by developers should be busted and HDFC would take the initiative in doing so."
When asked about the rates HDFC would offer to the builders selling properties on carpet area basis, Parekh said it would be around 50 basis points lower that what would be charged from others.
Parekh also asked the builders to give warranty on the properties sold to the customers. He said if consumer goods manufacturers could give warranty on their products, why should not the developers do the same.
He was speaking at a seminar on 'Housing and infrastructure development' organised by Bharat Chamber & Commerce and Credit in Kolkata.
Parekh said that it was a matter of regret that housing was still not considered as an infrastructure project by the government.
He said that both Central and state governments should focus on housing construction for low income group of the country.
The HDFC chairman said that the introduction of VAT would create a lot of confusion and added that continuance of the stamp duty, along with the new taxation form, would create duplication.
He said that in places like Bangalore, stamp duty was as high as 15 per cent and added that state government should bring down the duties.
Asked if the interest rates on housing loans would go down in near future, he said that it would all depend upon how the general interest rates move.
In the next four to five years, interest rates on housing loans were likely to be lower by 2 per cent.
Managing director of Bengal Ambuja Housing Development Ltd Harsh Neotia said there was a need for social housing in the country.
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