Arbitrary orders issued
without consultation and
inordinate delays in
grant of clearance to
projects by various departments
at the Centre are impeding
the growth of the real
estate sector, the Confederation
of Real Estate Developers'
Associations of India has
pointed out in a recent letter to
the Prime Minister.
According to CREDAI, which
represents over 6,000 real estate
developers through 20 state and
more than 100 city level member
associations across the country,
the time period for granting
approval to real estate projects
currently exceeds 18 months.
The delay in granting approvals
by departments dealing with
environment, defence, archaeology
and environment leads to
substantial escalation in project
cost, the Association claims in its
letter to the Prime Minister.
The CREDAI letter also
focuses on various other roadblocks
confronting the real
estate sector. Among them are
issues relating to compulsory
reservation of 20 per cent
land/Floor Area Ratio for economically
weaker sections
and low income groups in
every private sector development
project, budget provisions
like General Anti-Avoidance
Rules, the draft Real
Estate Regulatory Bill, SEZ
and IT park regulations and
artificial increase in cement
prices due to cartelization.
Highlighting the significant
contribution of the real estate
sector to GDP as well as in
employment generation and
towards general financial
health of the country, CREDAI
seeks a number of pro-active
administrative, land, tax and
banking reforms for achieving
full potential of the sector in
the letter. It also emphasizes
on the need for constitution of
a sub-group of the National
Development Council.
Measures like e-based standardized
single window
approval process, stringent
guidelines for the Ministry of
Environment and Forests, definition
of height zones for the
Ministry of Civil Aviation,
removal of FAR, introduction of
land reforms, rationalisation of
taxes, removal of restrictive
banking provisions along with
grant of infrastructure status to
real estate would go a long way
in rationalizing the housing sector,
the CREDAI letter states.
CREDAI has requested for a
meeting with the Prime Minister
to express the various concerns
of its members and also offer
concrete suggestions with
regard to some of the challenges
presently facing the sector.
In the event the Centre fails to
address the issues raised by real
estate developers, CREDAI may
decide to go on a one-day strike
followed by indefinite strike. A
final decision in this regard will
be taken during the representative
body's governing council
meeting in Mumbai on May 12.
"We are hopeful that the Prime
Minister will give us audience
and take appropriate decisions
in the interest of housing to all
and transparency in this sector
and there will be no need to
show resentment," said Lalit
Kumar Jain, National President
of CREDAI.