Amit Modi reacts over RBI governor Raghuram Rajan 's call to cut home prices

Reacting over RBI governor Raghuram Rajan 's call to cut home prices Mr.Amit Modi, Director, ABA Corp and Vice President CREDAI Western UP, said, “There has been consistent correction in property prices from last 3 years by nearly 35 to 40 percent across the industry; in fact nearly 90 percent of the home supply in the country has already shown price correction. Given the ever increasing cost of land and cost of construction any further fall in prices will only lead to Non Performing Assets and non delivery of projects. The fact is that real estate industry has seen a nearly 8 year slump and while RBI as well as the Developers have done their part, the banks on the other hand have not been generous enough to pass on the entire benefit of this reduction to end consumers and less than half of the cumulative policy repo rate reduction has been transmitted by banks. We sincerely hope that both Finance Ministry as well as the RBI push all the Banks to transfer the entire benefit to the end consumer for whose benefit it is meant, else these moves will severely stop short of benefiting the consumer and only help in buffering the bottom lines of the banks.”