To seek solutions from the government on Monday, members of MCHI-CREDAI, NAREDCO and other developers met the chief minister and asked for concessions in premiums and other payments made by developers with regard to construction.
The real estate industry, which is facing a slump, has called for more concessions from Maharashtra Chief Minister Udhav Thackeray on Monday. After meeting with developers in response to demands raised by city realtors, Thackeray formed a committee under the chief secretary to seek solutions which will be balanced for both developers as well as the state government.
The Committee will comprise of Housing Minister Jitendra Awhad, Urban Development Minister Eknath Shinde, Transport Minister Anil Parab, Chief Secretary Ajoy Mehta, Principal Secretaries of Finance, Urban Development, Revenue and the Municipal Commissioner of Mumbai and Thane along with the heads of MHADA, SRA and representatives from the real estate industry. The first meeting of the committee is expected to be held on Tuesday.
In the meeting, the chief minister acknowledged that the real estate sector was facing a slump and that the sector had to team up with the government to overcome the crisis. Representatives of the sector told Thackeray that the sector was facing a cash crunch and liquidity crisis, and also about the slump in sales. To seek solutions from the government on Monday, members of MCHI-CREDAI, NAREDCO and other developers met the chief minister and asked for concessions in premiums and other payments made by developers with regard to construction.
“Currently, the situation of the real estate market is very bad, struggling from cash crunch due to NBFC crisis, and no lenders are lending money to developers. To solve this in the city, we have met the CM and discussed more time for payments of premiums. Also, we have asked to deduct the premium charges, development cess, and Metro cess so that project costs which are very high can come down and developers can survive,” Niranjan Hiranandani, President, Assocham & NAREDCO, who was present in the meeting, told The Indian Express.
“We have requested to implement the unified development control rule as soon as it is possible, which will solve many problems related to the industry. We have also sought more time for premium payments,” said managing committee member, MCHI-CREDAI, Raigad, Vikas Jain.
Earlier, in November 2019, the BJP-Sena alliance-led government had deducted premiums for different segments in order to boost the city’s real estate, with a projected loss of revenue of Rs 2,200 crore.
Premiums currently paid by developers against the construction of residential apartment is 35 per cent of the total value of the project, while commercial developers pay 50 per cent of the project value.