Published On : Sun, Jul 19th, 2015

General body meeting of Credai Maharashtra held

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Focus on low cost flats: Gadkari to builders

photo (3)Nagpur: Union transport minister Nitin Gadkari has urged builders to focus on low-cost flats having area between 300 and 500 square feet. Addressing the general body meeting of Credai Maharashtra, the minister said that the central government had set a target of housing for all by 2022 and there were lot of opportunities in this segment. He urged them to use latest construction technology and materials to bring down the cost of housing.

The minister added that the centre was thinking of providing zero interest loans to buyers of small flats. “This will create a huge demand,” he stressed.

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The builders, however, are of the opinion that the government can reduce the cost of low cost housing by waiving off taxes. President Prashant Sarode and vice-president Shantilal Kataria pointed out that about 10% cost of a flat comprised of various taxes like stamp duty, VAT, etc. They further said that cost of housing could be further brought down by relaxing some of the norms.

Credai is strongly opposed to the proposed Real Estate Regulatory Act (RERA). “We have Maharashtra Housing Regulatory Act in the state, which is better and more balanced. The central act has been drafted keeping practices in North India in mind. Maharashtra is a developed market and consumers in general are more aware,” Kataria claimed.

Once RERA is notified the state act will cease to exist. Present RERA is being vetted by a select committee of Rajya Sabha MPs.

The builders are upset that while they were being made accountable through real estate regulations, no responsibility was being fixed on the sanctioning agencies. “The departments that approve building plans, provide water connections, electricity connections, environmental clearance, etc should be brought under the act. If they delay the process then we should not be held responsible for that,” Kataria said.

After the minister left the Credai office-bearers informed the members about various provisions of the state and central acts.

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