New system to quicken approvals for realty projects: Venkaiah

 A new system to improve the ease of doing business and getting approvals for construction projects will be introduced next month, under which applications will be deemed sanctioned after 60 days, Union Urban Development Minister Venkaiah Naidu said here on Saturday.

Speaking after inaugurating the fifth annual conference of the Confederation of Real Estate Developers’ Associations of India (CREDAI) Karnataka here on Saturday, he acknowledged that many housing and commercial construction projects were delayed by the slow process of getting approvals from various agencies. A real estate project needs around 40 approvals.

To simplify the process of giving the approvals, several rounds of meetings have been conducted with other ministers. State governments and urban local bodies have to play an active role in giving the approvals quickly, Naidu said. Urban local bodies will be given more powers, and the single-window clearance system will be introduced, he added.

Rules under the Real Estate (Regulation and Development) Act will be formed by October 16, while states need to formulate the regulations later. While real estate businessmen have expressed their worries about the law, Naidu said that genuine and honest developers would not be penalised under this law, aimed at regulating the realty industry by bringing in accountability.

Naidu also expressed concern at the widespread encroachments and illegal structures on stormwater drains in big cities such as Bengaluru, Chennai, Navi Mumbai, Gurgaon and Hyderabad and called them a “big eye-opener” for the government.

“Such things happen due to a lack of farsightedness, proper planning and timely action,” the minister said.