Mumbai developers to protest decision deficit, clearance delays

Mumbai's realty sector has taken a decision to protest decision deficit and policy paralysis in the state and central governments and various agencies. A large number of realty organisations, including Maharashtra Chamber of Housing Industry (MCHI) and Confederation of Real Estate Developers' Association of India (Credai), have joined hands to go on a token strike and sit-in dharna on May 3 to protest the lack of continuity in policies and inordinate delays in getting clearances for various projects. The Practicising Engineers, Architects and Town Planners' Association would take a call on April 26 on its participation in the proposed strike, reports Business Standard. Realty players' move comes at a time when there has been 14.8 per cent decline in property registration (sales and purchases) during January-March 2012 in Mumbai, while leave and licence agreements have surged by 11.72 per cent. The timing of the token strike is crucial when auto unions have announced their decision to go on indefinite strike to press for tariff revision among other issues and similar strike call has been given by auto fuel dealers in the last week of April. Paras Gundecha, president, Maharashtra Chamber of Housing Industry, said: "There are couple of issues which we have been flagging off with the government and civic authorities time and again. However, there has not been any major improvement. A committee appointed by the state government for high-rises does not examining structural stability; instead, it keeps on asking about other issues which are not in its jurisdiction. It takes a long time to get approval from the committee. Besides, it takes at least two years to get building plans passed by the the BrihanMumbai Municipal Corporation. All this needs to be expedited." Gundecha said at least 455 files of various projects await environment clearance. "In Gujarat, Punjab and Kolkata, the environment clearance is given in about eight to 10 months. But in Mumbai, it takes at least two years. The state government's intervention to fast-track these clearances, especially from the ministry of environment and forest is required," he mentioned. Yomesh Rao, director, YMS Consultants, which is engaged in professional consultancy to developers and societies, said: "Delays in the approval process negate the purpose of rehabilitation and redevelopment which in general affects the infrastructure and housing needs of the middle class. What needs to be done is that the administrative officials and politicians alike should take decisions without fear for the larger public interest." Sachin Ahir, minister of state for housing, said the government was prepared for a dialogue. "The government is open for talks. I want to appeal the builders and developers to reconsider their plan to go on a token strike." However, Gundecha said despite the talk there has not been any formal policy on rental housing has been framed by the state government. He also wondered why realty players need to keep aside certain flats for discretionary allocations despite the repeal of Urban Land Ceiling Act way back during the BJP-led NDA rule.

source: http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=19985&cat_id=1