The Confederation of Real Estate Developers’ Associations of India (CREDAI) has cautioned that if the Model Real Estate (Regulation of Development) bill is passed in its present form, it will hike prices of housing stock up by as much as Rs 300 per sq ft.
CREDAI vice-president Prakash Challa opposed the bill saying it would work as a deterrent to Indian realtors by strangulating the already overly regulated sector. He said that they were not against legislation to regulate the real estate sector, but added that if the rise in the costs housing projects would affect the end customers. The bill will be placed before Parliament soon.
Speaking on the topic, Mr. Challa added, “The very concept of affordable housing will be a failure if cost escalates by roughly Rs 300 per sq ft on account of introduction of the regulatory bill.”
He suggested that the best way to make houses affordable for all is to liberalise the sector by employing a single window clearance system for housing projects, clubbed with a simplified tax system.
The proposed bill will cause massive delays to the projects as even after obtaining clearance from concerned regulatory agencies such as the Directorate of Town & Country Planning and the environmental department, the developers will also have to get approval from the new regulatory authority.
Mr. Challa lamented the bill for its unfair attitudes towards real estate developers. He said the bill does not prescribe any penalty for the delay caused by the regulatory agencies in approving the projects. Even if the delays are caused by service providers such as TNEB and Metrowater Board in giving connections, the blame will be put on the project developers.
CREDAI vice-president Prakash Challa opposed the bill saying it would work as a deterrent to Indian realtors by strangulating the already overly regulated sector. He said that they were not against legislation to regulate the real estate sector, but added that if the rise in the costs housing projects would affect the end customers. The bill will be placed before Parliament soon.
Speaking on the topic, Mr. Challa added, “The very concept of affordable housing will be a failure if cost escalates by roughly Rs 300 per sq ft on account of introduction of the regulatory bill.”
He suggested that the best way to make houses affordable for all is to liberalise the sector by employing a single window clearance system for housing projects, clubbed with a simplified tax system.
The proposed bill will cause massive delays to the projects as even after obtaining clearance from concerned regulatory agencies such as the Directorate of Town & Country Planning and the environmental department, the developers will also have to get approval from the new regulatory authority.
Mr. Challa lamented the bill for its unfair attitudes towards real estate developers. He said the bill does not prescribe any penalty for the delay caused by the regulatory agencies in approving the projects. Even if the delays are caused by service providers such as TNEB and Metrowater Board in giving connections, the blame will be put on the project developers.
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