- Not just land auction, government must focus on alternative income sources
- Builders who violate RERA regulations should be fined
- A fine of 10 per cent of the project value
- If authorities focus on violations, hundreds of crores revenue to the exchequer
- The Chief Secretary should consider this idea
(King Johnson Koyyada)
The State government is striving hard to meet the irrigation and drinking water needs of the people of Telangana. Achieving this huge goal is not an easy task as it requires a huge funding. In order to mobilise the amount, people must be taxed. But the State government does not want to impose any burden on the people. So, how would the government accumulate the funds for these irrigation projects? Does it have any alternative sources of income or do the officials have any innovative ideas to address the challenge?
The government is auctioning land in Hyderabad to raise money to meet the growing irrigation and drinking water needs in Telangana. It is planning to sell lands under HMDA and Housing Board. There seems to be no innovative ideas among the officials except for the time-tested method of land auctions for generating revenue. For example, the Telangana RERA was established in the State in 2018. As per the law, every builder constructing flats in more than 500 sq.yards or selling more than 8 plots in Telangana is required to register under RERA. But, how many have registered with the Authority so far? As per the RERA website, only 4,002 block-wise projects or over 3,000 full-fledged projects have been registered with RERA. But are only 4,002 projects are under construction in Hyderabad?
10 percent of the project value
If the project is developed without permission from RERA, there is a provision to levy a penalty of 10 per cent of the total project value. Hundreds of projects in and around Hyderabad are being sold under prelaunch, pre-sale or UDS schemes without RERA permission. One of them belongs to Sahithi Group which took up sale of about 3,600 flats to be built on 10 acres in Ameenpur. The company has sold nearly 1,500 flats in the last four years and did not even start construction work. But what stops the RERA from levying fines against such companies, is the question which is bothering many.
The RERA Act stipulates that a fine of 10 per cent of the project value shall be imposed if sales are undertaken without RERA permission. Thus, even if each flat is valued at just Rs 30 lakh, the total value of the Sahithi Group project would be over Rs 1,000 crore. If the RERA imposes 10 per cent fine, the government would get revenue of at least Rs 100 crore.
* Not just Sahithi, many Hyderabad-based realty firms like Vasavi, Alliance, EIPL, Hallmark, Bhuvanateja, Ira Realty, RJ Group and many other companies are selling flats under prelaunch and UDS sales. More than a 100 such projects can be easily identified in and around Hyderabad even if the RERA acts as per the complaints lodged by the buyers against these companies till date. Once the State government starts acting tough against such illegals projects, there would be more transparency in the construction sector. The government also would get crores of rupees in revenue through these fines which can fund at least two irrigation and drinking water projects in Telangana. It would be great, if the government thinks on these lines and starts acting against illegal projects at least now.
