CREDAI Applauds Andhra Pradesh Government's Online Building Plan Approvals
The Confederation of Real Estate Developers’ Association of India (CREDAI) has expressed its appreciation for the Andhra Pradesh government's initiative to implement online approval of building plans. The apex body of builders has lauded this move as highly commendable, marking a significant step forward in streamlining real estate processes.
Streamlining Approvals with a Single Window System
The Andhra Pradesh Government has introduced a single-window system designed to expedite the approval process for building plans related to real estate projects. CREDAI has commended these real estate reforms, which include both the online building plan approval system and the single-window approach, anticipating a more efficient and transparent regulatory landscape.
Earlier in the year, the preeminent organization representing real estate developers advocated for accelerated clearance procedures.
Expected Reduction in Property Costs
Mr. Lalit Kumar Jain, the national head of CREDAI, highlighted the potential impact of the Andhra Pradesh government's endeavor. According to him, the implementation of online approvals is expected to significantly reduce property prices within the state. He emphasized the benefits of faster approvals, which can mitigate delays that typically inflate the overall cost of real estate projects. He also noted that streamlined approvals could positively influence cities like Hyderabad.
Curbing Corruption and Enhancing Transparency
Mr. Jain also welcomed the Andhra Pradesh Government’s decision to embrace online approvals while recalling CREDAI’s previous requests for such systems. He posited that this digital transformation would curtail corruption faced by real estate developers by minimizing human intervention, thereby fostering greater transparency. The reduction of red tape and bureaucratic obstacles will improve the ease and speed of doing business in the sector.
Addressing Roots of Corruption
Corruption has often been cited as a major impediment to the real estate sector’s progress. Addressing perceptions, Mr. Jain stressed that real estate developers are often victims of corruption, rather than promoters. In the traditional system, there was often no alternative but to engage in bribery to secure necessary approvals. Mr. Jain remarked that, currently, developers must engage with almost 40 officials to obtain clearances.
Call for Nationwide Adoption
CREDAI has committed to abstaining from bribing officials, while the Andhra Pradesh government has established a committee to oversee the online approval process. The single-window system for submitting building plans has also received a warm reception from the organization. Mr. Jain conveyed his aspirations for wider adoption of online building approvals across other Indian states, in line with Andhra Pradesh's pioneering efforts.
Concerns Over Central Government's Stance
However, Mr. Jain voiced his concerns regarding the perceived lack of urgency from the Central Government towards real estate reform. He lamented what he sees as a lack of attention to CREDAI’s appeals for streamlined processes and continues progress on the Real Estate Regulator Bill.