BJP's Devendra Fadnavis alleges Maharashtra government’s move to rationalise taxes was to favour select builders

Opposition leader and former chief minister (CM) Devendra Fadnavis has accused the Uddhav Thackeray-led state government that in the pretext of rationalising of

Opposition leader and former chief minister (CM) Devendra Fadnavis has accused the Uddhav Thackeray-led state government that in the pretext of rationalising of taxes for the realty sector in the wake of the Covid-19 pandemic, it was framing policies to favour a few select developers.

Devendra Fadnavis said that the state's move this would result in the windfall of ₹20,000 crore to select developers. (HT Photo)

Fadnavis said this would result in the windfall of ₹20,000 crore to these selected developers.

In a letter to Thackeray, Fadnavis referred to the recommendations of the Deepak Parekh-led committee which was formed to suggest ways to revive the realty sector due to the pandemic.

“The recommendations suggested by the said committee, it seems, are being implemented selectively without considering the real effect of the same,” said Fadnavis. “There seems to be a systematic method devised to give windfall benefit to said real estate developers by fragmented and prejudiced reduction of ready reckoner of some of their self-owned and interest plots to the extent of 70% of the existing ready reckoner’s rates. It was brought to my notice that when only a few projects of selected five developers were analysed to capture its effect, it was found out that this will lead to a windfall gain of more than ₹2,000 crore,” he added.

The Parekh committee was formed as the realty sector was facing a massive slowdown due to Covid-19. It recommended massive reductions of premiums.

Fadnavis alleged that the entire cabinet agenda, which was to be kept secret till a decision is taken, is being circulated to the developers and on social media.

While signing off the letter, Fadnavis warned Thackeray that if no corrective action is taken, he would be compelled to file a public interest litigation (PIL) in the Bombay high court.