Hurt Real estate sector

The decision of New CM, Devendra Fadnavis to review all major property development projects can hurt the real estate sector, as all the projects which was cleared in last four to six months of the previous government has put the sector in a fix. Big real estate projects are involving the huge cost and the sector itself will be in a state of suspense for four or six months now according to market experts.

What it is needed to review these projects?
The newly appointed BJP government is taking the cognizance of the charge leveled by the former irrigation minister Mr. Ajit Pawar because few projects of worth Rs12,000 crore were cleared in hurry during in last few months in the tenure of ex- Chief Minister Prithviraj Chavan. CM, Devendra Fadnavis wants to see if procedures were followed.

What does Prithviraj Chavan have to say?
Prithviraj Chavan told to DNA that new government has every right to review any kind of decision taken by his government. And the more he added “I have no problem if they will review the decisions taken be me. I haven’t done anything wrong in my tenure. If the cost of the projects increases by this move, then the incumbent government has to think over it”.

What is a cluster development project?
Any developer with minimum of 4,000 sq meters of land can represent the plan for cluster development, which will include all amenities. And after that government will allot the a Floor Space Index of four and it means means four times the land area can be build as towers or sky scrapers.

What did the previous government do?
The actual value of projects cleared is unknown and a slew of major cluster development projects, which are for Mumbai, were cleared during the last few months. Ajit Pawar was hinting the corruption blame when he made the allegation against his own Chief Minister Prithviraj Chavan.

Why are real estate developers upset?
All the real estate developers who have raised debt to continue the projects already cleared this review will means the huge loss interns of money and as well as reputation. Kailash Agarwal, Chairman of Avighna Developers, doing a cluster project in South Mumbai stated that “Cluster development policy will be affected by this review decisions. The review will result in three to four months escalate the cost many fold. There are only couples of cluster developments projects in Mumbai which have been successfully executed since the inceptions of the scheme in 2009. The more he added that all the developers now again have to pay the bribe for same project and its nothing else then chance to collect the black money.
President of National Real Estate Development Council, Sunil Mantri, said “ The new Chief Minister can review the previous government decisions because they have all rights to do this but it should be done “speedily and with good intention”.