Different procedures in different cities deter expansion

In most of cities,land prices and development charges are very high. The affordable house could be developed only when the state government helps the developer either in acquiring land at cheap prices or give relaxation in government duties and charges. The norms for affordable housing under JNNURM should be implemented and developers should be allowed to built under the scheme or under Rajiv Awas Yojana. All the concessions,incentives under this scheme which is presently available to the state government should also be directly allowed to private developers. Merely interest subvention scheme will not help the country to fulfill requirement of affordable housing.

There have been instances of home buyers accusing developers of alterations in plans.

Minor changes or deviations in plans are unavoidable. Sometimes changes are required for the betterment of the project or due to regulatory requirements. We normally avoid alterations or deviations in plans. But,if,there is any minor variation which could be due to regulatory requirements or providing additional features in the project,we do not change the unit layout in any circumstances. Buyers normally do not understand these technical reasons and thus misunderstand.

One of the hurdles faced by developers when expanding is the process of getting licences from local authorities. Do you think there is a way out?

If we talk about single window clearance system it means dealing with one nodal authority. This will certainly help to reduce time and cost of the project. Also,this will give more transparency as far as regulatory approvals are concerned and end users will be able to get complete idea about the project approval status. This will also help the developer to work more efficiently and expand his business operations in multiple cities.

Has that changed any of your companys expansion plans? Which areas are you looking at?

Yes,the different procedures in different cities are a deterrent for future expansion. I feel Sohna,Gurgaon,Delhi and all industrial areas along side highways in Northern India are the potential cities for the future development

What about the issue of a real estate regulator? How effective are developers in making their points come across?

The requirement of a regulator is the need of the hour to have organised growth of the sector. We,as a developer are requesting the ministry to develop a model in which all rights and interests of all stakeholders are protected and should be implemented through a Central act. We feel if every state adopts the regulatory act independently,there will be one more set of approvals required,and the purpose of regulator will be defeated. In other words,the regulator should be the central authority.

Do you see any chances of a price correction?

No,in our opinion,increase in prices is due to high demand. The prices are sustainable and in near future we do not see any correction in prices. In fact,we feel that prices will go up further in some segments such as retail,office space and mid-segment housing.