Single window clearance, lower stamp duty on Credai Bengaluru’s list of recommendations for Karnataka government
A follow up meeting with the state government is expected in a few weeks, Credai Bengaluru’s chief Amar Mysore told HT.com
The Bengaluru chapter of the Confederation of Real Estate Developers' Associations of India (Credai) has presented a memorandum to the Karnataka government to implement reforms that would help streamline real estate development in the IT capital, Amar Mysore, president of the organisation said on September 4.
Clarity on transferable development rights (TDRs), single window system for obtaining no objection certificates (NOCs) and lowering stamp duty rates, among others, were some of the issues that found a place on Credai’s list of recommendations for the state government.
TDRs allow landowners to sell or transfer their development rights to another location. This is done in exchange for monetary compensation or other benefits. “There are a lot of TDRs in the market but their effectiveness is only after getting utilisation certificates. To get this utilisation certificate one has to face a lot of bureaucratic hurdles,” said Amar Mysore.
The developers' body also stated streamlining plan approvals as another priority, alongside measures such as implementing a single window system for obtaining no objection certificates (NOCs), reducing approval fees that are currently linked to guideline value, and standardizing zoning regulations across the various planning authorities to bring in synergy and ease of doing business.
To improve efficiency, Credai Bengaluru proposed eliminating unnecessary procedures like commencement certificates, standardizing buffer zones, especially for a city that has moved away from an agrarian economy to become a tech capital and incorporating new uniform zonal regulations for the entire Bengaluru Metropolitan Region.
Credai Bengaluru also recommended lowering stamp duty rates for joint development agreements and for mortgage of title deeds which recently has been increased on ad valorem basis without any cap. Additionally, the organisation suggested implementing a staggered payment scheme for remittance of labour cess since the construction happens over a period of time.
Commenting on a likely date for a follow up meeting with the state government, Amar Mysore said: “This is a large exercise that they’ve to undertake. It's an inter-departmental exercise which will take its time. So in a matter of a few weeks, we should be able to meet them.”
Outlook for Bengaluru
According to Amar Mysore, residential project launches and sales in the IT capital are likely to grow 10-15% in the ongoing calendar year.
Infrastructure developments, such as the ongoing construction of new metro lines and improvements in road connectivity, are expected to further boost property values and enhance the quality of life in these areas, he opined.
Developers are also increasingly focusing on ramping up inhouse construction to combat the shortage of quality contractors and innovative construction technologies to tackle the severe labour shortage while trying to meet the growing demand, he added.