To push the government and municipal corporation to expedite clearances for housing projects, the Maharashtra Chambers of Housing Industry (MCHI) has asked its around 1,500 members not to launch new projects.
“After the Adarsh scam, there has been a slowdown in granting of permissions and today we are not sure of getting all clearances,” Sunil Mantri, MCHI president. “We have told our members not to commence any project until they get all
The builders’ association claim that if they do so it would lead to a shortage in housing stock in the city and subsequently the real estate prices might not drop further.
But experts dismiss the claim.
There are 25,000 flats lying unsold in the city because buyers cannot afford the current prices.
“Builders tend to resist price cuts but ultimately, they would have to go for it after their holding capacity is exhausted,” said Pankaj Kapoor, CEO, Liasas Foras, a real estate research firm.
Chief minister Prithviraj Chavan, who also heads the urban development department, and municipal commissioner Subodh Kumar have put several housing projects on hold for various reasons.
Each project requires at least 52 different permissions from various agencies, and the entire process takes at least two years.
But what builders don’t realise is that the government and municipal corporation have adopted a cautious approach, after the Adarsh scam.
The Adarsh scam relates to the controversial housing society in Colaba.
Originally meant to be a six-storey building for war veterans and widows, it was surreptitiously converted into a 31-storey tower and flats allotted to politicians, bureaucrats and military commanders.
The builders’ association has also ruled out price cuts.
“If permissions are speedily given, there would be more stock and there is a chance of price correction in some areas due to oversupply,” said Mantri. “But I do not see such a possibility in the near future.”