India’s Tier 2 and Tier 3 cities see surge in home loans – News

Most housing finance companies find that 60-80% of sanctioned home loans go to borrowers in these cities.



By HP Ranina

Published: Sat Sep 10, 2022 6:08 PM

With rising interest rates in India, banks and financial institutions may find it difficult to provide home loans to genuine borrowers. It would also impact builders who have completed housing projects and are unable to sell available stock. Is my assessment of the situation correct?

It is true that there are not enough mortgage applications in the big cities where the price of real estate has remained high. However, the demand for home loans has increased significantly in recent months from buyers in Tier 2 and Tier 3 cities due to the emergence of more and more small and medium-sized industries in these areas. . Most housing finance companies find that 60-80% of sanctioned home loans go to borrowers in these cities. The recent rise in interest rates has not dampened homebuyer sentiment in these cities, as homes are available there at extremely affordable prices. The new trend of working from home has also boosted the demand for housing in these cities.

My company has been exporting goods and commodities to India for several years. Some Indian importers who have not repaid their loans to banks are facing the problem of their imported goods being seized and sold by customs authorities because the customs duties have not been paid by the Indian importer. Is this action legally valid?

Customs authorities would be justified in seizing and selling imported goods if customs duties have not been paid. However, if the Indian importer is subject to proceedings under the Insolvency and Bankruptcy Code (IBC), the customs department cannot sell the goods of the importer for the realization of duties. unpaid. This issue has now been settled by a recent decision of the Supreme Court of India in a case where the customs authorities sold the goods belonging to the importer who had not paid the customs duties on the imported goods. The Supreme Court held that this was not legally permitted. The Court held that the provisions of the CBI would prevail over those of the Customs Act to the extent that, once the moratorium was imposed under the relevant provisions of the CBI, the customs authorities would have only limited jurisdiction to assess and determine the amount of customs duties and other fees. Customs authorities would not have the power to initiate the collection of duties by way of sale or confiscation under the Customs Act. Therefore, any action taken by way of sale or confiscation is invalid in law while proceedings under the IBC are pending.

One of the main problems faced by Indians and foreigners is the slowness of the judicial system. Thousands of cases have been pending for several years with no prospect of being heard in the near future. Is anything being done to remedy the situation?

There are approximately 6 million cases pending in the High Courts of India. One of the main problems is to fill vacancies in the various High Courts. About 220 judges have been appointed to various High Courts over the past sixteen months. India’s new Chief Justice who took office last month has taken this issue very seriously and on the first day of his presidency of the Supreme Court, more than 900 various petitions were settled before fifteen benches of the Court. During the month of September, Supreme Court justices will sit for extended hours on Mondays and Fridays to clear the backlog of miscellaneous motions. Several measures are taken to expedite the settlement of cases. The current Chief Justice is also keen on spreading legal awareness and providing legal aid to the poor and disadvantaged sections of society. He launched the Legal Aid Defense Counsel system in 365 districts in 22 Indian states. Therefore, efforts are being made to reduce the backlog of court cases, but this is an arduous task that will have to be undertaken seriously over the next five years.

HP Ranina is a practicing lawyer, specializing in tax management and foreign exchange laws of India. The opinions expressed are his own and do not reflect the policy of the newspaper.

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