Following SC observation, real estate companies say building plans approved only after environment clearance
Environment clearance, however, has been a sore point with builders because it is the biggest contributor to delays in building projects.
Jan 18, 2016
Source : ET

 

NEW DELHI | MUMBAI | BENGALURU: Real estate companies in top metros have said that local government bodies approve building plans only after the project has been granted environment clearance. This follows the Supreme Court's Friday observation that housing projects must get environment clearance before work can start.

 In July last year, the National Green Tribunal (NGT) had struck down an environment ministry office memo that allowed builders to correct their mistake by applying for environment clearance while construction was on. The tribunal said the ministry's memo altered the Environment (Protection) Act, 1986, and the EIA notification of 2006.

 
However, the NGT order was stayed by an earlier bench, which was headed by erstwhile chief justice of India HL Dattu. On Friday, the top court said it will reexamine its earlier order, backing the NGT's stand that housing projects cannot take off without green clearance. 

However, builders in Noida, Gurgaon, Bengaluru and Mumbai said they have always had to obtain environment clearance to get their building plans passed. 

In Noida, for instance, once land is allotted by the Noida Authority, the builder applies for environment clearance as it a pre-condition for getting building plans sanctioned by the authority. 

Similarly in Gurgaon, land has to be bought from the owners directly and then builders have to apply for a licence for the land. They apply for environment clearance once the licence is secured, according to builders ETspoke with. 

"Without the environment clearance, the local government will not pass the building plans for the project," said Manoj Gaur, president, Confederation of Real Estate Developers Association of India (CREDAI), NCR, and managing director of Gaursons India, a real estate developer. 

Arjun Puri, director at Gurgaon-based Puri Constructions, said in Haryana there is a clause in the building plan approval process that makes green clearance mandatory. 

Environment clearance, however, has been a sore point with builders because it is the biggest contributor to delays in building projects. Gaur said it takes up to 18 months to obtain environment clearance, depending on the city. 

"Over the last one year, no builder in Noida has got environment clearance before at least eight months," he said. Srinivasan Gopalan, CEO of Ozone Group in Bengaluru said environment clearance takes at least six months. 

"This takes the longest time among all approvals. No projects can be launched without environmental approvals," said Gopalan. "The time line for approvals has to be crunched to make projects more viable for developers and more affordable for customers." 

Zaheer Memon, partner at Mumbai-based realty developer Zara Habitats LLP, said most projects in Mumbai must adhere to norms regarding coastal regulatory zones (CRZ), while some suburban locations need to comply with forest-related regulations. 

"No building plan can be put forth unless the developer gets approvals from related authorities, like Maharashtra Coastal Zone Management Authority (MCZMA), which is a state-level subordinate of the ministry of environment and forests," he said. 

CREDAI recently sent a representation to the environment ministry saying there should be a time-bound, single-window clearance system, as a majority of conditions in the environment clearances that builders get from the government are the same. 
 

Latest Realty News

Govt-confident-of-getting-real-estate-bill-passed-in-budget-session
Jan 18, 2016
NEW DELHI: With lakhs of home buyers being exploited by private builders and developers, the government plans to bring the real estate bill to Parliament in the first half of the budget session and is confident of its passage.
Office-space-vacancy-dips-to-15%-in-2015-from-around-19%-in-2013-
Jan 16, 2016
MUMBAI: Showing faith in India's economic growth, corporate occupiers have been lapping up office spaces for their expansion, which is reflected in the decline in office vacancy levels across the country to 15% from around 19% in 2013. The sharpest fall in pan-India vacancy levels is expected in 2016 and 2017 when it will ease below 13%, said a JLL India report.
Sunil-Mantri-Resigned-as-Chairman-of-NAREDCO-in-October-
Jan 16, 2016
MUMBAI: Sunil Mantri, chairman & managing director of realty development company Mantri Realty, resigned as Chairman of industry body NAREDCO in October.
Pune,-Hyderabad,-Navi-Mumbai-in-10-Affordable-Property-Markets:-JLL-India
Jan 12, 2016
New Delhi: Hyderabad, Pune, Navi Mumbai, and Ahmedabad were among the 10 affordable property markets in the country where flats were available within the budget of Rs 30-50 lakh, according to JLL India.
Real-estate-market-may-see-an-upswing,-say-developers
Jan 11, 2016
Vadodara: The real estate market in Vadodara seems to be set for an upswing this year. The CREDAI Vadodara Property Carnival 2016 organized at Navlakhi Grounds saw a record number of bookings for apartments and duplexes over last three days.
Ficci-Chief-Advocates-Soft-Loans-to-Boost-Low-Cost-Housing
Jan 10, 2016
New Delhi: Government needs to look at the possibility of providing soft loans of Rs 10-20 lakh for purchase of houses to give a boost to the realty sector and investment cycle, says newly-elected Ficci president Harshavardhan Neotia.
Head-of-PACL-Arrested-Over-Alleged-Rs-45,000-Crore-Investment-Scam
Jan 09, 2016
New Delhi: Central Bureau of Investigation (CBI) on Friday arrested the founder of PACL Ltd over allegations the property company cheated investors of $6.8 billion (about Rs 45,000 crore), in what local media is calling the country's biggest financial scandal.
Real-estate-investors-duped-by-Abohar-builder-meet-DGP
Jan 08, 2016
Chandigarh: Senior Congress leader Sunil Jakhar on Thursday led a group of people from different areas of Punjab to the director general of police, alleging that they had been duped by an Abohar-based builder in a real estate project and that no action had been taken even after 16-odd cases were registered. Following the representation, DGP Suresh Arora asked the inspector general of police (crime) Nageswara Rao to look into the matter.
Complaint-Against-DLF-Rejected-by-Fair-Trade-Regulator
Jan 07, 2016
New Delhi: The Competition Commission of India (CCI) on Wednesday rejected a complaint of anti-competitive practices made against realty major DLF relating to a project in Gurgaon, Haryana.
Delhi-NCR-New-Home-Launches-Down-14%-in-2015:-Property-Consultant
Jan 06, 2016
New Delhi: Launches of new homes fell 14 per cent in the Delhi-NCR market last year to nearly 23,000 units due to a slowdown in demand, according to a report by Cushman & Wakefield.

Latest Realty News Of State

Realty Talk's