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Naredco for extension of building approvals and RERA timelines

Housing and Urban Affairs Secretary Durga Shanker Mishra on May 28 chaired a webinar on ‘Ease of Doing Business – Construction Permit & COVID: Realty Check’ organised by the National Real Estate Development Council (Naredco).

Mishra spoke about the extensive work that the Government had done during the past seven years, including development of 1.12 crore houses under the Prime Minister Awas Yojana (PMAY), the launch of the Affordable Rental Housing Complex scheme for migrant workers, the infrastructure status to affordable housing and 100 smart cities.

According to a press release, members of Naredco raised concerns about the demand and supply in the sector that has been badly affected by the COVID-19 pandemic. The association sought extension of timeline for completion of projects by 6-9 months under RERA, extension of all building permissions, rationalisation of Government taxes on real estate, and control of rising prices of cement and steel.

Naredco also sought reintroduction of interest subvention scheme, grant of input credit tax on GST paid in leased commercial real estate, suspension of insolvency law for some more period and an online environment clearance system.

Responding to the demand of extension of timeline for project completion, Mishra said he will ‘go in detail’ to understand the matter and highlighted that if need be, will take this matter to RAC (RERA Advisory Council).

However, the Secretary did mention that this relief was given last year because of the imposition of the national lockdown. On high taxes levied by the Central and state governments on real estate, he directed senior officials of the minister to examine the matter in detail and said, “We will try to reduce Government levies.”

Commenting on the ease-of-doing business in real estate and challenges the sector faces due to clearance and approvals delay, Naredco National President Niranjan Hiranandani said, “India has scaled up in the ease-of-doing business Index over the recent years but much more needs to be done further to be effective. The Industry urges the Government to expedite environmental and other essential building approvals through digitisation and single-window. The fast track of approvals can cut down project delays by nearly 18 months in Mumbai itself and help the industry to meet the deadlines targeted.”