Housing Approval status to be Made Available Online..!

The central government plans to fast track approvals for real estate projects and put up all approval status online in a move that will help consumers check if a project is approved before booking a house and bring down home prices, reports ET.

A committee on streamlining approval procedures for real estate projects, headed by former Competition Commission of India (cci) Chairman Mr. Dhanendra Kumar, will submit its report to the ministry of housing and urban poverty alleviation this week and it will form the basis of a policy guideline that all states will need to follow, a senior central government official said.

"These guidelines would be one of the conditions precedent for states to access central government funding from the housing ministry," the person said on condition of anonymity.

The committee is likely to suggest bringing all state & central clearances on 2 separate electronic platforms so that builders / promoters can get faster clearances without having to go to multiple authorities for individual approvals.

Faster Approvals..!

Uploading approval status on the Internet will be a great relief to house buyers who till now have had to go by the developer's word that all approvals have been taken before the launch of a project, only to see it gets stuck after paying significant sums due to the lack of some approval or / the other.

Faster approvals will also help builders bring down home prices significantly because approval delays, which sometimes run into years, result in costs escalating by up to 40%.

 

 Mr. Lalit Kumar Jain, National President, Confederation of Real Estate Developers' Associations of India (CREDAI) and the Managing Director of Pune based real estate firm developer Kumar Urban Development, said., "House prices can become cheaper by up to 40% if approvals come faster. A housing project with 100 fo 150 flats in Mumbai could take up to 3 and a half years for getting all clearances, Jain said. The situation in Bengaluru, Chennai and Gurgaon is a trifle better, with time taken for approvals ranging from 2 to 3 years.In this period, most developers who have brought fresh land for the project end up paying interest"

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