Realty relief for Mumbai builders: Centre’s 60-day deadline to approve projects

If permissions are not given on time, the builder can file an affidavit and begin construction

The Central government’s proposal to approve construction proposals within 60 days is set to give a huge relief to the real estate sector that has been battling a slowdown.

Currently, builders have to spend a considerable amount of time and money to get approvals. (HT FILE)

Currently, builders have to spend a considerable amount of time and money to get approvals, and it takes years to just start construction.

To speed up construction permissions, the Central government plans to introduce the Model Approval Process, in which online approvals will have to be given to a builder within 60 days of filing an application.

If permissions are not given on time, the builder can file an affidavit and begin construction.

Dharmesh Jain, president of the Maharashtra Chambers of Housing Industry (MCHI) and chairman and managing director of Nirmal Lifestyle, said, “This will work wonders and provide an impetus to ease of doing business.” Another problem with approvals taking years is that the cost real estate projects tend to increase exponentially. This ultimately affects the prices at which the house is sold, making them out of reach for many homebuyers. Experts, however, pointed out that just making laws without implementing them is a futile exercise. Real expert Ajay Chaturvedi said the problem is with implementation at the civic bodies. “Execution at the ground level is a problem across Maharashtra. The system is filled with corrupt officials who create hurdles. The builders are forced to take multiple permissions from government entities, which is time-consuming,” he said.

READ MORE

Union budget: Tax incentives not enough to boost realty in Mumbai, say experts

Unsold real estate units touch 2.55 lakh in Mumbai Metropolitan Region