Real estate players, under the aegis of National Real Estate Development Council, apprised Planning Commission deputy chairman Montek Singh Ahluwalia and other officials of depleting demand and liquidity crunch. They sought credit and increased overseas borrowings but the government made it clear that it would not tinker with the monetary policy again and again to restore real estate boom.
'Monetary policy cannot be operationalised to restore real estate boom,' a senior finance ministry official said at the meeting. The real estate players urged the government to further cut interest rates on home loans and restructure debt of developers.
The Times of India