Positive builder-politician nexus to revive realty sector, says Aaditya Thackeray
Environment minister and Shiv Sena leader Aaditya Thackeray on Thursday admitted that there was a politician-builder nexus but said it was a positive one required for the revival of the realty sector in the state
Environment minister and Shiv Sena leader Aaditya Thackeray on Thursday admitted that there was a politician-builder nexus but said it was a positive one required for the revival of the realty sector in the state.
Speaking at a builder’s convention, Thackeray said it was precisely due to this nexus that the state was able to undertake a series of steps to end recession in the realty sector. “There is a politician-builder nexus but it should be seen positively. We have been able to reduce stamp duty and premiums because of this nexus.”
He said, “We were able to end the mandi [recession] in the realty market which was there for years. In the last two years of our rule, we were able to start projects which had been pending for 25 years. That is the speed we are working with. The basic hope of the citizens is to have a house of their own for which we are working.”
Thackeray further said the whole effort of the Maha Vikas Aghadi government was to focus on digital interface so that human intervention is virtually eliminated and to further speed up the construction approval process.
Successive governments have been accused of having a nexus with builders and unduly favouring them. There were reports of politicians funnelling their ill-gotten wealth in the realty sector.
Rajan Bandelkar, president, National Real Estate Development Council, said the nexus had worked wonders.
“For years, we were vilified for having such a nexus. However, this partnership with the state government has done wonders. The recovery of the Maharashtra real estate sector was faster compared to other sectors. Our initiatives like the cut on stamp duty were replicated in other states across the country,” said Bandelkar, who is also the chairman of Raunak Group.
The realty sector, which was plagued by slowdown for years, took a severe hit after Covid-19 broke out.
The government had in August 2020 announced to reduce stamp duty on sales of apartments to 2% from September 1 to December 31, 2020, and then to hike it to 3% from January 1 till March 31, 2021. In addition, the construction premium in Mumbai was halved last year which mopped up a staggering ₹13,543 crore for the Brihanmumbai Municipal Corporation.