Mangalore, Sept. 19, 2012: In response to a memorandum submitted by the Confederation of Real Estate and Developers’ Association of India (CREDAI) – Karnataka, CM Jagadish Shettar has directed the principal secretary of the Urban Development Department and Housing to hear the CREDAI’s grievances and identify the problems of the construction industry.
CREDAI Karnataka President Sushil Mantri had stated in the memorandum that housing prices in Karnataka can fall by 20 – 30 percent, state revenue will be boosted, and hundreds and thousands of jobs can be generated if the government satisfies their demands.
The memorandum suggests that the BBMP’s and BDA’s dual plan approval system must be changed by amending the Act and shifting approvals to the BDA. Currently, builders have to wait for 2 – 3 years to get a sanction for a building plan and must go through 170 papers and 40 departments.
According to PMA Razak, president of the Mangalore chapter of the CREDAI, the CM had informed the delegation that he will take action as per the report of the Urban Development Department and Housing, which he expects to receive in 15 days.
The CREDAI has urged the state government to focus on major areas to realize the potentials of the construction sector. Some of their demands include rolling back of the Rs. 1.5 lakh stamp duty on joint development agreement signed between the land owner and the developer, amending Section 109 of the Revenue Act so that farmers can realize the true value of their land, increasing floor area ratio to at least 5 depending on road width, and removing VAT on construction material.