Affordable housing move irks developers

The government decision to make it binding on all mega construction projects in the city to construct homes for the economically weaker sections and the middle income groups has attracted ire of the developer lobby.

The state has moved an amendment in the development control regulation making it mandatory for all constructions measuring 20,000 sq ft and above to construct homes for the economically weaker sections and low income groups on 10% of the total built-up area.

The developers will also need to reserve another 10% of the area for the middle income group (MIG).

Even as the proposal was approved at the civic improvements committee on Thursday, developers opposed the move.

Bhupesh Jain of Earth Designers and Developers said, “You cannot expect a 300 sq ft low income groups (LIG) house to be sold in a Peddar Road project. Similarly, it would be tough to find buyers for 2,000 sq ft homes in suburban Dahisar,” he said.

Sunil Mantri of Mantri Developers Private Ltd echoed Jain’s view. “While creation of LIG and MIG homes should be encouraged by an incentivised programme, it must not be made obligatory. You cannot expect such homes to be created and sold at places with high market rates,” he said.

Anil Agarwal of the RNA (AA) group said, “Any law required rational usage. I am sure that the state will use its wisdom in ensuring the provision in properly used.”