Bhubaneshwar developers hope revised realty bill will drive growth
Developers cheered about the proposed dilution of mandatory funds to be kept in a special account for any housing project
May 05, 2015
Source : The Economic Times (ETRealty.com)

 

BHUBANESWAR: Congress vice-president Rahul Gandhi may have thrown his might against the Modi government's real estate bill, but developers in the city feel certain key changes proposed by the new dispensation were urgently needed for the survival of the real estate sector.
 
A major change that has cheered the developers is a proposed dilution of mandatory funds to be kept in a special account for any housing project. The NDA government suggests that developers have to keep 50 per cent of advance received by them from buyers in the special account meant for the particular project. According to the UPA's draft bill, the developers would have to set aside 70 per cent of funds in such accounts.
 
"Land cost has become very high even in tier II and tier III cities. So, if a developer deposits 70 per cent in the designated account, one will be left with no leeway to operate. It would mean virtual shutting down of shops by many players," said Pradipta Kumar Biswasroy, president of Real Estate Developers' Association of Odisha.
 
The Congress and other opposition parties have argued that the dilution by lowering of funds would affect completion of projects and go against buyers' interest. "A practical suggestion is in the interest of both developers and buyers. We hope the new bill will drive growth," Biswasroy said.
 
The UPA bill defined carpet area as the net useable area minus the walls, which the NDA government's bill has omitted. The new bill also gives developers the freedom to carry out minor changes from the sanctioned plan without defining the type of changes. "These changes will not affect the customers' interest in any way. It will only give some elbowroom for developers to carry out their work," said D S Tripathy, governing council member of the Confederation of Real Estate Developers Association of India.
 
Tripathy said the UPA bill was too rigid about completion deadline of projects. "Apart from developers' fault, a project may get delayed due to pulling out of financers (banks), delay in providing various clearances by the government authorities and unavoidable developments such as natural calamities. The new bill should take these into account," he said.
 
Umesh Patnaik, president of Association for Odisha Real-estate Developers (AFORD), said action should be taken against a developer when he willfully defaults on his promise to customers. "The earlier bill presumed developers guilty for any delay or deviation," he said.

Latest Realty News

Home-developers-continue-to-restrict-new-launches-on-huge-inventory
May 05, 2015
NEW DELHI: Developers across the top six cities continuing to restrict new residential project launches
India-for-deeper-engagement-of-ADB-for-smart-cities,-railways
May 05, 2015
New Delhi: Finance Minister Arun Jaitley sought "deeper engagement" of the Asian Development Bank (ADB) for development of smart cities
Maharashtra-govt-plans-to-start-'housing-fund'
May 05, 2015
Mumbai: In a bid to make homes more affordable for people in Maharashtra, the state government is planning to start a 'housing fund'
Secondary-property-market-showing-signs-of-recovery
May 05, 2015
New Delhi: Sales in the secondary property market are slowly picking up
Modi-government-faces-opposition-test-on-GST-and-Real-Estate-Bills
May 05, 2015
NEW DELHI: The government's legislative agenda may suffer a setback
Pvt-equity-investors-fund-realty-sector-amidst-slowdown-fears
May 05, 2015
Pune: Private equity investors have not lost faith in the potential this sector holds as they continued to pump in money
BMC-office-proposal-trips,-builder-scores
May 04, 2015
Bhubaneswar: The development authority has two different sets of building plan approval rules for government agencies and private builders
5-lakh-Mumbai-families-likely-to-be-hit-by-Rent-Act-amendments
May 04, 2015
MUMBAI: A state housing department plan to amend the Rent Control Act has created panic among residents
Homebuyers-of-Emaar-MGF's-Gurgaon-project-protest-‘2-year-delay’
May 04, 2015
GURGAON: Disgruntled homebuyers of Emaar MGF's Palm Terrace on Golf Course Extension Road in Sector 66 staged a protest against the builder
Opposition-slams-govt-over-flip-flop-in-discretionary-quota-probe
May 04, 2015
Bhubaneswar: Opposition parties in the state have criticised the government for its U-turn over cancellation of land allotments under discretionary quota

Latest Realty News Of State

Realty Talk's