Maharashtra industries minister seeks year-long extension on concessions to real estate projects

Subhash Desai said several new projects have benefitted due to the 50 per cent concessions in premium effected due to the Covid-19 pandemic.

Industries minister Subhash Desai of the Shiv Sena has written to urban development minister Eknath Shinde, also his party colleague, seeking a year-long extension on concessions to real estate projects due to end on December 31, 2021.

Desai said several new projects have benefitted due to the 50 per cent concessions in premium effected due to the Covid-19 pandemic.

In his letter, Desai also pointed out that the revised Coastal Regulation Zone plans for Mumbai were approved only in September 2021 after Environment Minister Aaditya Thackeray repeatedly pursued the matter, adding the path for redevelopment of several old buildings in Mumbai has been cleared after that. Hence, the benefits must be extended for a year, he added.

Speaking to The Indian Express, Desai said that he has written a letter few weeks back, but there has been no decision on it yet. Shinde did not respond to calls.

Meanwhile, anticipating a last-minute rush for concessions in premium, the building proposal department of the Brihanmumbai Municipal Corporation (BMC) has asked all builders and developers to submit their proposals 15 days before the deadline of December 31. These concessions were given by the state government and the civic body considering the hit the real estate industry took due to the pandemic. “It is human tendency to make a last-minute rush before the window closes. So, we have given clear instructions in advance, that the eleventh-hour rush has to be avoided. After the municipal commissioner approves the concessions, the demand note has to be prepared and then payment has to be paid and realisation has to be carried out. This takes time,’’ said Vinod Chithore, chief engineer, building proposal department, BMC.

He also said that some builders have already defaulted in payment of instalments of premium which must be recovered so that municipal revenue comes in on time.

Deepak Goradia, president of the Maharashtra Chamber of Housing Industry – Confederation of Real Estate Developers Association of India, said he was not aware of any letter written by Desai. On Chithore’s letter, he said, “We have also informed our members to give proposals at earliest to avoid last-minute rush.”

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