Developers Dispute EWS Housing Reservation Mandate
The Maharashtra real estate sector is embroiled in a conflict with the state government following a directive by the Urban Development Department. This directive mandates private developers to allocate 20% of plots and tenements for the economically weaker sections (EWS).
This move has encountered significant opposition, not just from individual developers, but also from the Confederation of Real Estate Developers Association of India (CREDAI). CREDAI criticizes the proposed policy as impractical and inadequately conceived. The organization has formally lodged an objection with the Town Planning Department (TPD), asserting that the Rajeev Awaas Iona had comprehensively addressed all facets of such housing initiatives.
"The department is at present hearing people with stake in real-estate industry and have filed objections. The hearing report will be submitted to the government for approval,” stated Avinash Patil, the deputy director of the Town Planning Department.
Issued in January, the government notice stipulates that for developments on plots exceeding 2,000 square meters, developers must earmark 20% of the area for EWS housing. For these EWS plots, the area is to be in the 30 to 50 square meter range. For developers constructing apartments in these areas, 20% of the built-up area is required to comprise units in alignment with the prescribed size of 27.88 to 45 square meters.
The real estate industry contends that such a policy requires more careful consideration before its implementation. The sector posits that the notice, in its present form, has the potential to negatively impact real estate development. “The notice lacks clarity. In the present form the move will hit us badly,” said Hemant Naiknavare, vice-president of CREDAI's Pune Metro chapter. The industry emphasizes the importance of thorough evaluation before enacting such sweeping changes.