Saturday, September 12, 2015

REALTY ALERT - DEVELOPERS' DELIGHT:The Times of India

To put an end to the long drawn process of getting approvals and ease business norms in the real estate sector, the MCGM has devised a promising plan
In what could bring a much needed cheer to the construc tion industry, the Municipal Corporation of Greater Mum bai has initiated steps, which would reduce the time taken for getting the necessary permissions for starting the construction work. As per the World Bank report, it takes around 27 steps and around 162 days for obtaining a single construction permit in Mumbai. The report further adds that the cost of obtaining the construction permit is around 46.05 per cent of the cost of the construction. To reduce the time taken, the MCGM conducted a detailed exercise to study the process of construction permits and re-engineer it for which they appointed PWC as consultants. On the basis of the recommendations, MCGM plans to initiate steps, which would simplify the construction permits and reduce the time taken by eliminating avoidable procedures. The study foresees a reduction of procedures involving interdepartmental clearances by about 50 per cent and a reduction in time by about 60 per cent with these initiatives.
SELF-CERTIFICATION WHEREVER POSSIBLE

In order to reduce the time between the IOD and PCC (Plinth CC), key reforms like accepting third party certificates, self-certification wherever possible is being considered subject to subsequent verification of these.For instance, for getting an No Objec tion Certificate (NOC) from the tree authority, the architect and developer shall jointly submit a copy of the tree plan showing the trees on the plot with their names by way of selfcertification along with the application of the building proposal. In case of any misrepresentation, both the developer and the architect, will be liable for action as per the provisions of the prevailing Tree Act.

Vicky Oswal, chairman and managing director, Oswal Realtors, explains that the self-certification would actually reduce a lot of time taken for the process. “Though the responsibility of the project anyway lies with the developer and the architect, by proposing self-certification, the authorities actually are putting in the additional responsibility directly on the developers. The move would ensure that the architects and developers take utmost care during processing the documents,“ Oswal informs. Due to these initiatives, the developer too can be assured that he would get all the required permissions on time and would be able to commit a time-frame for the completion of his projects as well.“Earlier, it would take at least around one year just to get the required approvals after the IOD would come.This would unnecessarily delay the proj ect and add to the cost of construc tion,“ he says.

NOCs BASED ON THE FULL POTENTIAL OF THE PROJECT

In addition, it is also be ing looked upon to issue all No Objection Certificates (NOCs) including the tree authority NOC and the chief fire officer NOC, based on full po tential of the project.

“This will enable time-saving for the projects. As the Floor Space Index (FSI) ac crues to developers in stages for certain projects, the devel oper ends up going to the same author ity at least three four times at various stages of the project.

The new initiative would reduce the time taken,“ Bhavesh Sanghrajka, managing director, Shraddha Lifespaces explains.

In the pre-construction stage, certain applications ­ the Tree authority NOC, Storm Water Drainage (SWD), etc could be submitted even before the submission of the building proposal, which is also a welcome step.

TIME LIMITS FOR GRANTING APPROVALS

The MCGM also plans to set time limits for granting approvals for each process. For instance, the IOD and Plinth CC are proposed to be issued simultaneously within 30 days from date of receipt of the proposal. Even the chief fire office shall offer his re mark for NOC within 7 days of sub mitting the application. After issuing the IOD and PCC, the building plan ning department shall co-ordinate with other departments for a joint site visit. The building planning sec tion shall also carry out the visit for granting further clearances within two days from the date of application.

“The new government, understand ing the cumbersome process towards procuring permission for construc tion, has eased out a number of steps to make approvals simpler and faster.

The MCGM has also re-engineered the process of construction permits for timely construction of projects,“ Babulal Varma, managing director, Omkar Realtors & Developers says.

The Occupancy Certificate (OC) and Building Completion Certificate (BCC) shall be issued simultaneously within 15 days from the date of appli cation and submission of requisite compliance.

All completion remarks received from the architect shall be forwarded by the building planning section to respective departments within two days and respective departments will provide inputs within seven days for the occupancy certificate.




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