By Dr Sanjay Chaturvedi, LLB PhD
Not all but majority of the builders have stopped paying salaries to their regular employees on pretext of Lockdown. On condition of anonymity, an employee having middle level of employment with a builder who took thousands of crore saying that he got Rs25,000/- a month instead of his full salary. Hundreds and thousands of such full time employees are been not paid by the builders who are having huge projects and have availed crores of rupees as loan. From where is is suppose to pay his EMI and pay for the education of the children?
When project life is three to five years, builders get sales in last few finishing year. He puts his funds, either own fund or borrowed to the salaries for admin, legal, finance, IT, field staff etc and pay Architects and consultants before he gets his first token. When such investments are made, that is the nature of business, the project gets started.
Salaries are already provided for either own funds or borrowed funds. Why to stop salaries when Lock down giving nightmares to these employees of real estate? Not paying vendors in time is the biggest black spot on the industry already, before the lock down. Not paying vendors, consultants, professionals and now they have got the reason for not payment is “Lock Down”.
Real estate is capital intensive business. The process of development run into years. Permanent staff is needed for compliance, admin, construction, legal, finance etc. Before one start a project, these expenses are provided for. Now giving an excuse of lockdown and lesser fund flow is not substantiated with the intention of intentional defaulters. Government have given the stimulation package for not making profits but to distribute to the economy where such employees need it the most.
Associations are not taking this seriously as the telnet will never come to this industry. Young generation will never seek jobs in real estate companies if you treat your employees like this.