The Haryana government has decided to grant all mandatory clearances for residential projects before issuing licences to developers to eliminate delays on account of approvals that builders often cite as the reason for projects being completed long after the handover deadline, a chronic problem in NCR.
Making the announcement, chief minister Manohar Lal Khattar said, “Any developer, on the basis of a letter of intent (LOI), will be granted all the necessary clearances within six months, after which they will be issued a licence for the project.” The CM was speaking at the Urban Development Conclave 2022 in Gurgaon. The onus of approvals being granted on time will rest with government departments. “In case any government department fails to grant clearances within the stipulated deadline, it will be penalised,” the CM said.
Only when all the mandatory clearances are in place will the developers get the licence for their project. “Thus, there will be no reason for any delay in the completion of projects. The onus will then be on the developers,” Khattar said.
Currently, developers get the licence first and then apply for clearances related to zoning plan, building plan, environmental clearance and others. These clearances take months, sometimes more than a year, delaying projects. There have been instances of construction of projects being completed while some approvals remain pending.
On external development charges (EDC) that are due from realtors, Khattar said that on the request of developers and after deliberations, the deadline for clearing the same has been extended by six months. “The department of town and country planning and real estate regulators are working on a mechanism by which 10% of the 70% money deposited in the Rera account of the project by the developer will be transferred to the department against EDC. By this way, a part of the EDC will be collected,” he said.
The state government, he added, is also working on making a provision of Rs 1,000 crore in the budget so that infrastructure development in residential sectors can begin. “The developers hold the government responsible for lack of infrastructure in sectors, and the department blames builders for non-payment of EDC, delaying development. So, the government has now taken the first step.”
Khattar also said the state government is working on drafting regulations for structural stability of buildings. “This will ensure measures to check the strength of a structure at three stages — pre-construction, at the time of issuing occupation certificate, and post-construction. The draft will soon be made available on the government website and suggestions will be invited to make it more effective,” he said.
The state will also soon bring in a policy to ensure smooth handover of a real estate project to its RWA by the developer. At present, there is no clarity on the status of work to be done, funds transfer and other issues at the time of the handover. “The new policy will have a checklist for better coordination between both parties and a hassle-free transfer,” the CM said.
