India’s shopping centre industry has lost more than ₹90,000 crore in just two months of lockdown and urgently requires stronger financial support beyond the Reserve Bank of India’s (RBI) existing measures, the Shopping Centres Association of India (SCAI) has said.
The industry body argued that while the RBI’s rate cuts and loan moratorium provide temporary repayment relief, they do not address the sector’s pressing liquidity crisis. Without a comprehensive financial package, SCAI warned, hundreds of malls could face closure, threatening thousands of jobs and putting banks at risk of large non-performing assets (NPAs).
Not Just Big Developers
SCAI sought to counter the perception that malls are backed only by large real estate players and foreign investors. Of the roughly 650 organised shopping centres in India, more than 550 are owned by standalone developers, many of whom qualify as SMEs. In addition, over 1,000 smaller centres operate in tier-II and tier-III cities.
“The organised retail industry is in severe distress and has not generated any revenue since the lockdown began. Survival is now at stake,” said Amitabh Taneja, Chairman of SCAI. He added that while moratoriums delay repayment, they do not solve the cash crunch faced by mall operators.
Risk of Defaults and Job Losses
The association has cautioned that if the government and RBI fail to provide urgent support, more than 500 shopping centres could go bankrupt. This could translate into potential NPAs worth ₹25,000 crore for banks, alongside widespread job losses in retail and allied sectors.
SCAI has also flagged concerns that malls, despite being structured and regulated environments, have not been permitted to reopen in many states — further deepening the crisis for developers and tenants.
Demands for Relief Package
In its submissions to policymakers, SCAI has asked for:
- An extension of the loan moratorium until March 2021, without penalties.
- A one-time loan restructuring facility with lower interest rates.
- Short-term working capital financing for 6–12 months at concessional rates.
- GST rebates to offset revenue losses during the lockdown period.
- Reduction of borrowing costs to a 5–6% range to make debt more sustainable.
The association stressed that a long-term revival plan is essential to stabilise the retail real estate sector, prevent closures, and protect jobs.
