HYDERABAD: The Greater Hyderabad Builders Federation has urged the Government to modify certain contentious clauses incorporated in GO 86 on construction of buildings.

Addressing a press conference here on Saturday, the Federation leaders announced that they would hold a round table next week with policy makers, builders, architects and other stakeholders to seek clarity on the issues.

The leaders were pained that no amendments were made to the GO despite a positive assurance from Municipal Administration Minister Koneru Ranga Rao in this regard.

Major crisis

"The construction industry is facing major crisis and compared to 60 to 80 building applications that used to be submitted for permissions each month, only six have been made since the orders were issued nine months back," the Federation chairman N. Ravi Kumar told presspersons here today.

Apart from mortgage clause, the Federation has been demanding changes to clauses on FSI allowed and the provision of occupancy certificate.

On mortgage clause, the builders were agreeable to mortgage 5 per cent of the built-up area (till 750 sq.mts) but not an entire floor.

Also, the condition on the mortgaged floor being on certain floors was not acceptable to them.

There was no clarity at what stage of construction the mortgage would be released and who the authority would be, the builders argue.

"There is also no clear declaration as to which body will give occupancy certificate and we are not agreeable to it being linked with water and electricity connections," said Federation President C. Prabhakar Rao.

"The fact that building activity has come to a standstill shows that the new rules are impossible to comply with," he said.

The Federation appealed to the administration to incorporate suggestions put forth by the building industry before finalising a modified draft.

General Secretary K. Venkatesh also participated.

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