Chennai Metropolitan
Development Authority's (CMDA) close scrutiny of building plans &
completion certificates has hit affordable real estate projects in the Chennai city .
The clampdown followed the collapse of an
under - construction 11- storey building in Chennai's Moulivakkam area (Near
porur) in which Aabout 60 people were killed.
“It is indeed a knee
jerk reaction by the planning authority ,“ said Mr. R. Kumar of the
Confederation of Real Estate Developers' Associations of India (CREDAI), in
Chennai. “But the CMDA has no other option when everybody points fingers at
them.“
Mr. Kumar, formerly
with the CMDA and now managing director of Navin Housing in Chennai, was of the
view that a bottleneck has been created due to delays in approvals.
Some other builders
around Chennai agree that the backlog of pending clearances for affordable
houses is rapidly building up.
An official at the
registration department who did not wish to be named, said there is a dip in
home registrations compared with last year. The CMDA, on its part, said a panel
of experts is looking into all the multi-storey building plans that have been submitted.
The panel includes an
expert from the Anna University and an official from the PWD department. “The
panel sits for scrutiny regularly & clears miniumum 10 building plans in
each session which lasts for about 2 hours,“ a senior CMDA official.
“We are also pushing
builders to submit a mandatory quarterly progress report of their construction
projects,“ the CMDA officer said.
“These regulations
have already been there in the Development Regulations and the town and country
planning Act, but it is after the building collapse that we have started
mandating total compliance.“ The other rules being pressed include submission
of a signed completion certificate. Every stake-holder in the project,
including the builder, the architect and the structural engineer, should sign
and certify that each one of them is satisfied with the quality of
construction.
“This puts the onus
of the building’s stability on each of the stake holder,” the official said,
adding, “It is true that all this may be causing some delay, but it is only
likely to hit those who are trying to evade regulations. We will continue to
follow these procedures until the Government enacts new regulations based on
the one man commission’s recommendations following the building collapse.” While
builders complain that scrutiny is not CMDA’s job and that the planning
authority does not have the manpower to undertake such a massive operation,
housing finance majors say the delay could not have come at a worse time.
“The size of
Chennai’s affordable housing finance market has already dipped from a business
of Rs. 700 crore per month last year to
Rs. 550 crore per month now. To add to this, builders are struggling to cope
with procedural delays,” said Srinivas Acharya, MD, Sundaram BNP Paribas Home Finance.
He said that builders
have slowed down on further addition and are waiting for the ready-to-occupy
flats to be sold first. “When the market picks up, it will get sold out
quickly. In the past 2 years, people have had the luxury of buying ready made
flats. This option made flats. This option may not be available in the future
once the buying starts,“ he added.
“There is a need to
bring in regulations that are preventive in nature. Officials need to ensure
that only well qualified engineers and architects are allowed to work on
building projects. Not only will this ensure that the quali “When the market
picks up, it will get sold out quickly. In the last two years, people have had
the luxury of buying readymade flats. This option may not be available in the
future once the buying starts,” he added.
“There is a need to
bring in regulations that are preventive in nature. Officials need to ensure
that only well qualified engineers and architects are allowed to work on
building projects. Not only will this ensure that the quality of buildings are
good but it will also provide job opportunities for qualified engineers,” Mr.
Acharya added.
Src: ET
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