- Plea to scrap GO No.50 which did away with setbacks in high-rise structures
- The RERA should be strengthened to check project pre-launch sales
- High-rise structures should get permissions only after development of infrastructure
- Demand to ready the Hyderabad development master plan in 18 months
King Johnson Koyyada: Municipal Administration Minister KT Rama Rao, taking part as the chief guest in the CREDAI property show held recently at Hi-Tex auditorium, expressed concern over the builders becoming greedy, leading to embarking on the project pre-launch sales. He felt sorry for developers drawing up plans to build high-rise structures as they liked. He appealed to them to come to a unanimous decision on the floor-space index.
For the builders to fall in line, the Municipal Administration Minister should take some crucial decisions. In undivided AP, the then prevailing regime had issued GO No. 168. The GO insists on increasing setbacks with the increase of height of the building. However, in 2019, the Government of Telangana issued a GO No. 50 relaxing the rules pertaining to set backs in high-rise structures, making available more site area at the disposal of the builders. As a result, the property owners have begun giving their properties for development to those builders who give them more constructed plinth area. The GO fuelled competitiveness among the builders.
Taking advantage of the GO, traditional builders who were hitherto averse to build high-rise structures, new builders or those who worked as directors in real estate companies came forward to build high-rise structures. But, most of them sold units in project’s pre-launch offers. Therefore, the Municipal Administration Minister should do away with the GO No. 50.
No master plan for Hyderabad
With the Government of Telangana coming to power, it failed to evolve a master plan for development of the city. Even eight years after the formation of the new state, there is no master plan for development of the city of Hyderabad, reflecting upon the style of functioning of the municipal administration department. In any city across the globe, master plan for development of the city would be prepared taking into consideration the people’s needs for the next 50 years.
How can permissions be issued to apartments and other real estate projects in the absence of the master plan? Municipal Administration Department alone knows the criteria for issue of permissions and collecting fees from realtors. Is it possible to achieve what cannot be achieved in eight years in just 18 months? If at all it takes place, it can be described as a record of sorts. There is no doubt that the development of master plan can be hastened up, provided the Minister is desirous to have one.
How can RERA give its nod to prelaunches?
The Minister expressed concern over some builders selling units in project’s pre-launch offers. Why the government of Telangana is not enforcing the RERA Act more stringently? Who is protecting the interests of violators without strengthening the hands of the RERA and without bringing the rules violators under the control? How can builders like Vasavi, Sumadhura, Phoenix and Urbanrise get RERA permission having sold units in pre-launch offers? Does it mean the RERA is regularizing irregularities? Why KTR is not acting tough to make the fraudulent developers toe the line using the RERA which works under the control of his ministry?
Realtors or developers who sell units in project pre-launch offers and UDS deals are supposed to pay 10 per cent of the project cost as fine. But the RERA here is not collecting the fines. RERA is unresponsive in spite of promoters sell units in pre-launch offers, it is alleged. MahaRERA and Karnataka RERA have been extending good services to buyers. In UP, the RERA there has been strengthened by Yogi Government. But, what happened to Telangana RERA which apparently has no teeth. Why attempts are being made to water down the RERA in Telangana? Why the RERA Tribunals are not being constituted? Does it mean that the Government of Telangana has been encouraging the pre-launch sales and UDS sales rather indirectly? If RERA were to be strengthened, the greediness among the builders will be checked, it is felt.
Development of infrastructure should take precedence
To give permission to high-rise structure in a region, the infrastructure should be developed first in the region. But, the Government of Telangana did not initiate steps in this direction. Road development in some of the areas of Hyderabad does not constitute infrastructure development at al. At least now, high-rise structures are allowed to be built only after developing basic amenities in a given area.
