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Builders Fear ‘Pro-Poor’ Order Is Unviable Building Block
Posted by Pradeep Sadanapalli | June 14, 2008 | 338 views
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The state government’s decision to allot 25 per cent of space in layouts for economically weaker sections and lower and middle income groups has stirred up controversy.
The municipal administration and urban development department had issued GO-288 making this allotment mandatory. It was the Centre, which asked all states to ensure shelter for the poor and middle classes under the National Housing Policy and the Jawaharlal Nehru Urban Renewal Mission.
It also asked the states to issue suitable orders to achieve the desired goal.
“Builders who gain benefits through construction activity should fulfil their social responsibility by following the guidelines,” said Mr S.P. Singh, principal secretary of municipal administration and urban development. “The government orders are aimed to benefit all sections of the society.”
However, builders strongly resent the directive and say that it would lead to further skyrocketing of land prices in Hyderabad. They are angry since they not only have to earmark 25 per cent of land for lower and middle income groups but also five per cent of the land free of cost to Hyderabad Urban Development Authority, apart from another 20 per cent for road network, parks, playgrounds, open spaces and social infrastructure.
“This means that builders will not have even 50 per cent of the land for construction activity,” said the Andhra Pradesh Builders’ Forum president, Mr C. Sekhar Reddy. “This will increase the financial burden on buyers who come under higher income groups.” “As per rules, we cannot even sell the property to others if the middle income groups don’t come forward to purchase property in the layouts,” he added.
According to Mr M. Prem Kumar, organising secretary of the Greater Hyderabad Builders’ Federation, the orders would only cause chaos. “They will also create ill-will between the rich and poor people as both have to live in the same premises,” he said. He suggested that the government implement exclusive housing schemes for the poor without creating a scenario of social conflict. The government stance builders have the social responsibility of providing houses to middle, lower and economically backward sections.
- The land, which is allocat ed for them should not be used for other purposes.
- Maximum plot size of up to 100 square meters.
- Builders should allot 5 per cent land to economically weaker sections, 10 per cent for lower income groups and 10 per cent land for middle income groups.
The government’s aim is impractical. It may lead to social conflicts among the rich and poor as they have to live in the same premises.
Developers will be in trouble if middle and lower income groups don’t come forward to purchase land in posh localities. Prices of properties will further shoot up as developers will burden other sections to get returns.
SOURCES:
Deccan Chronicle
Topics: Property Matters, Govt Failures, Real Estate |
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