Friday, 15 January 2016

Haryana may consider restructuring infra charges on realtors

Haryana government will consider restructuring of infrastructure development charges payable by real estate developers on a case to case basis in view of slowdown in the property market.

Addressing the realtor’s apex body CREDAI’s conclave, Haryana Chief Minister Manohar Lal Khattar said the deferment of development charges called EDC/IDC for all the developers would not be “beneficial” as government also needs funds for the development of infrastructure and to run welfare schemes.

“I know that the financial conditions of all the developers are not the same,” he said while responding to the industry’s demand of restructuring the payment of EDC (External Development Charges) and IDC (Infrastructure Development Charges).

The Chief Minister asked builders with good financial health to complete the ongoing projects instead of expansion.

“We will have to find an amicable solution,” Khattar said on the sidelines of the event.

CREDAI President Getamber Anand demanded that the Haryana government should restructure the EDC/IDC amount payable by the builders with penalties, similar to the lines of the Uttar Pradesh Government. He said the developers are not able to pay EDC/IDC charges due to slowdown in the real estate market, particularly housing segment.

The Haryana CM said also assured that industry that he would look into their concerns while establishing the real estate regulator in the state.

According to the Real Estate (Regulation and Development) Bill, 2015, which was approved by the Cabinet last week, the states and UTs need to establish the ‘Real Estate Regulatory Authority’ to regulate real estate transactions.

The industry is demanding that the proposed law should not be applicable on ongoing projects. It wants the government authorities, which give various approvals for the project development, to be brought under the ambit of this bill.

Khattar asked the builders and financial institutions to focus on the development of affordable homes in a planned way. He said the government has framed a New Integrated Licensing Policy for overall development of the state.

Seeking investment in the state, the Chief Minister said that the connectivity and infrastructure facilities are being improved. He informed that the two smart cities have been included in the list of 100 smart cities to be developed across the country.

Khattar said his government plans to develop Gurgaon as ‘Smart City’, although it has not been included in the list.

The state government could infuse its own funds for developing Gurgaon as smart city, he added.

Khattar informed that Haryana would organise a global investors meet during March 7-9, 2016, to attract investments in the state.

Source: PropertyatNeoDevelopers.Wordpress.Com

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