CREDAI Conclave 2015 closes with some breakthroughs for the Real Estate sector

New Delhi, December 22, 2015: The Confederation of Real Estate Developers’ Associations of India (CREDAI) today announced that the Haryana Govt. has agreed to consider the real estate sectors demand for keeping ongoing projects in the State out of the purview of the proposed Real Estate Regulatory Authority of India (RERA). This was announced today by Shri Manohar Lal Khattar, Hon’ble Chief Minister of Haryana during the concluding ceremony of the CREDAI Conclave, which was held in Delhi. In addition to this, the Haryana Chief Minister has also agreed to look into the demand for providing a single window clearance for upcoming projects across the state in line with his government’s commitment to being industry-friendly.

This is a major development for the Real Estate sector in the NCR region and closely follows the decision of Smt. Anandiben Patel, Hon’ble Chief Minister of Gujarat who had yesterday agreed to look into CREDAI’s submission to keep ongoing projects out of RERA’s purview in her state. In another significant development, Shri Akhilesh Yadav, Hon’ble Chief Minister of Uttar Pradesh stated his governments’ intent to develop international airports in Jewar, Greater Noida and Hiran village, Firozabad to promote tourism in Agra and has written to the Prime Minister requesting for faster clearance of the projects. Establishing new airports in the state will provide a major opportunity to the real estate sector and open new growth avenues.

Speaking at the CREDAI Conclave, Shri Manohar Lal Khattar, Hon’ble Chief Minister of Haryana, mentioned that Haryana has a lot of scope for real estate development considering the location advantage which the state enjoys. The Haryana Government has proposed the construction of an international airport between Kurukshetra and Karnal in order to boost industry in the state. He also agreed to look into the request for not applying RERA to new projects in the state, which was welcomed by CREDAI. The Haryana Govt. has also launched a New Integrated Licensing Policy (NILP) 2015 for development of Hyper and High Potential Urban Complexes (HHPUC). These HHPUC will be created in Gurgaon-Manesar, Faridabad-Ballabhgarh, Sohna, Sonepat-Kundli, Panipat and Panchkula-Kalka-Pinjore. Village development is a key focus area for the Haryana Government and they have initiated development of a new working body called “Nagar Panchayats”. The Chief Minister also announced the Global Investor Summit to woo investors from across the globe to invest in Haryana.”

Mr. Getamber Anand, President, CREDAI National said, “A Single Window Clearance system is required to reduce the time and cost involved in navigating the complex web of permissions between various departments. This accounts for 25% of the cost paid by the buyers. Duplication of taxes levied through ESI and BOCW should also be removed. We request both the Central & State governments to ensure that judgments by any High Court should be considered valid across the country. This will not only save time and effort for the developers but will also benefit the end consumer. The real estate sector contributes to 7% of the country’s GDP and is the driving force for the Make in India initiative. Since we propel demand in the manufacturing sector of multiple ancillary industries, we must be granted industry status”.

With the central theme of ‘Clean India-Skilled India-Strong India’, the CREDAI Conclave 2015 also saw the release of the CREDAI – Jones Lang LaSalle (JLL) white paper on Smart Cities. The white paper spoke about the opportunity to transform Indian cities into global destinations. It showcased how real estate sector will play a major role in smart city development & Housing for All by 2022.The paper shares brief comprehensions on strategy for smart city development, section & funding of smart cities, implementation by PPP, Foreign countries interest in development of smart cities in India & real estate development.

The CREDAI Conclave also saw discussions on the proposed Goods & Services Tax (GST) & its impact on the real estate sector. A report by KPMG on the multi-fold impact of the proposed GST regime on the real estate sector and property buyers and the need for corrective steps was also presented during the Conclave. Presently the GST has been passed by the Lower House of Parliament, but pending before Upper House. There will be an interesting transition when the GST will be implemented.

Corporate Comm India(CCI Newswire)