Realty players bat for cut in red tapism and reduction in duties and development charges

In a bid to revive crisis-ridden realty sector, realty players had made an appeal to the centre, state government and civic body to cut down red-tapism, reduce all duties and charges by 50%, cut sanction of approvals including clearances from the ministries of civil aviation and environment and forests on fast track, provide further income tax relief in the repayment of principal and interest amount of loan and cut interest on housing loan to 7% from 9.5%.

At the maiden meeting called by the Chief Minister Devendra Fadnavis in the presence of union ministers Piyush Goyal and Hardeep Singh Puri on Saturday evening, the realty players representing CREDAI-MCHI, NAREDCO called for further improvement in ease of doing business at the Centre, state and civic body level and allow them to pay various duties and charges in installments instead of fines charged for delayed payments.

In case of Mumbai, where the Development Control Rules 2034 have come into effect from last year, the realty industry wants the Brihanmumbai Municipal Corporation to resolve transitory issues in order to pick up the construction activities and thereby boost demand for homes, especially affordable ones.

State additional chief secretary (housing) Sanjay Kumar told DNA, "It was government's initiative to address some of the issues face by the realty sector for its revival."

CREDAI-MCHI president Nayan Shah said liquidity is another major issue faced by the realty sector especially in the wake of recent NBFC crisis. "The banks need to provide realty players the construction completion lending as at present under construction projects go bankrupt for want of funds and not those who are ready projects. The loan up to the completion of construction will be quite helpful for a realty player to complete projects within time. The government will have to allow merger and amalgamation in the sector as it will make the balance sheet of the said company stronger,'' he noted.

National Real Estate Development Council (NAREDCO) president Niranjan Hiranandani said that the cost of the premium and other charges are quite high and they will have to be reduced in the city. This will help further promote affordable housing in Greater Mumbai ''Lot of projects are stuck up for want of clearances from the ministries of civil aviation and environment and forests. The civil aviation minister has assured to look into the issue on a priority basis," he noted.