Cut red tape, say realtors in Delhi

The long winding clearance route through the Delhi Development Authority (DDA) and the Municipal Corporation of Delhi (MCD) is posing a road block for real estate development in Delhi as per a Federation of Indian Chambers of Commerce and Industry (Ficci) study.

Real estate developers are now pitching for time-bound and single-window clearance system for streamlining procedures.

The study based on feedbacks from builders like Ansal Properties, DLF Universal, Unitech, Som Datt Builders and Pacific Land Developments highlighted that there is a long delay in getting clearances from multiple authorities such as chief fire officers, the Delhi Urban Art Commission and the Delhi Vidyut Board.

Plagued by multiple clearance boards, developers face huge losses of 30-40 per cent of the total project cost.

At present, a builder has to submit as many as 25 documents and an additional 15 documents for getting group housing, institutional, commercial and industrial schemes sanctioned. Also, the sanction of the building permit takes nearly 60 days provided the authority inspector does not raise any objections.

And with objections, the sanctions take nearly 90 days for clearances. At times, the clearances even take two years. All this is posing a huge threat to the construction industry, as per the study.

Developers have called for reduction in the number of documents and affidavits required and regular revision and updation of builders bye-laws to remove redundant documents.

Other builders also said that clearances like height clearance from an authority other than DDA/MCD should be done away with. The study suggested that Delhi could be zoned for maximum permissible height above sea level which can then be checked by DDAMCD.

Builders also called for a change in the mindset and attitude of the authority officials as they face excessive dependence on authority inspectors for clearances.

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Real woes

• The Ficci study is based on feedbacks from builders like Ansal Properties, DLF Universal, Unitech, Som Datt Builders and Pacific Land Developments
• Multiple clearances lead to huge losses of 30-40% of the total project cost
• At present, a builder has to submit as many as 25 documents and an additional 15 documents for getting group housing, institutional, commercial and industrial schemes sanctioned
• Also, the sanction of the building permit takes nearly 60 days. In some cases, it may stretch to two years