Will a level playing field work?
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Government’s move to squeeze in the socio-economic factor does not gel well with ‘liberalised’ industry, writes T. Lalith Singh
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Paradox of realty: The G.O. calling for mandatory provision of space in luxury housing sites for economically weaker sections irks many a builder.
It started on a rather tentative note but picked up quite unexpectedly to register a rather meteoric growth. In just a few years, the real estate activity heralded a new dawn and as it keeps it steady march, promises to metamorphose the cityscape rather dramatically.
The construction boom encompassed the suburbs and made builders habituated to single towered apartments look beyond horizons to dream of erecting the most modern and luxurious buildings. And now, builders feel worry lines on forehead again and say it is because of recent regulations issued by the government.
Government Order
The G.O.288 has really not gone down well with most in the industry who find objections to some of the clauses. In land pooling scheme, the need to earmark 5 per cent land for sale by the HUDA for residential/commercial use and similar reservation of land for providing housing for the economically weaker sections (EWS), lower income group (LIG) and middle income group (MIG) has not really found acceptance with them.
The group housing schemes will have to have at least 10 per cent of the total built up area or dwelling units meant for EWS with a maximum of plinth area of 20 sq. metres for each unit. Similarly, 5 per cent each has to go for LIG and MIG dwelling units on 40 sq. metres and 60 sq. metres respectively. And, builders find it hard to see this as shaping into a reality. “Can any dwelling be set up with 20 sq. metres and will it be liveable for any one,” argues a developer.
The requirement of having to hand over a slice of a project land to HUDA also is objected to. “When we are investing such huge amounts to create a living environment, why should HUDA take away a part of it,” points out another.
The idea of creating living spaces for EWS and others would not work out in ultimate analysis is the premise on which most in the industry reject the concept.
Not only the developer or builder is forced to invest in buying land at princely amounts, he pays all taxes too for a project. And the question asked is when there are no concessions or subsidies offered, why should there be a demand from government to earmark spaces in this fashion.
Modern day luxury abodes and villas are set in a different environment with a certain lifestyle and will trying to squeeze in others work out, asks a builder who is in final stages of formalising his next project.
“They should consider if EWS and LIG blocks fit into a gated community of villas,” he says. Builders do voice concern at the regulations but refuse to go on record with their comments.
Some describe it as draconian and others feel it could end up striking badly at the city’s growth on real estate map.
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