Relief for realty business should be less than 50%: Mumbai, Thane civic chiefs

MUMBAI: Municipal commissioners feel some relaxation must be given to the real estate industry, though maybe not 50%, said state urban development secretary Bhushan Gagarani. In July, state government had sought the opinion of commissioners of Mumbai, Thane and Pune on 50% concessions in premiums/levies/ cess, as recommended by the Deepak Parekh committee, appointed by it to revive the industry.
Gagarani said chief minister Uddhav Thackeray had asked the chief secretary, UDD, and municipal commissioner to give a joint hearing to Maharashtra Chamber of Housing Industry and arrive at a formula. “The CM wanted to know if government gives some relaxation (during Covid period), how and how much will be passed on to end-consumers,” said Gagarani.
CREDAI-MCHI on Wednesday made a presentation before the panel on why 50% concessions were justified. CREDAIMCHI president Deepak Goradia said unless the concessions were given, projects will not be viable and no new projects will start. “Currently, builders who have running projects and who need NOCs for continuing work are paying premiums and levies. There is no other payment as the industry is in a slump due to Covid-19,” he said. He said while workers have started returning, construction will get fully on track only by the year-end or early next year. On passing benefits of concessions in premiums to consumers, real estate industry sources said almost 98% of redevelopment projects are stuck as they are unviable due to high premium and levies.