By: Lalit Kumar Jain, CMD, KUL & CREDAI Chairman
Track2Realty Exclusive: Administrative Reforms
A. Single window clearance for building approval.
B. Uniform and simplified building permissible rules.
C. No discretionary stoppage of work after granting approval for commencement without hearing by regulator/civil court.
D. Mindset reform; special campaign for political leaders and bureaucrats to support/accelerate growth, remove impediments.
E. To put mandatory block mentioning following in every order/permission, Date of application, Potential investment, Potential contribution to GDP in rupees, Potential new employment generation, Date of sanction, Number of days delay beyond permissible limit, reasons.
Land Reform
A. Minimum FSI to be 4, in major metro and tier 1 cities, as in AP State Model
B. Data bank of integrated land records
C. Comprehensive view of inter-related land laws
Banking Reforms
A. Housing to be declared infrastructure priority sector
B. Home loan to be made available at 7% for LIG, EWS and 9 % for others.
C. Project finance at 9%
D. Roll over/COD facility at par with Industry
Fiscal reforms
A. FDI
i. Current limit of 50000sq mtr and 25 acres area to be removed/reduced to 20%
ii. FDI in Retail be permitted
B. ECB
i. To be permitted for housing financial institutions independent.
ii. To be permitted as per FDI norms.
C. Housing tax free bonds at 5% to fund retail home loan and affordable housing project finance
D. VDIS a comprehensive scheme to remove black money and to create liquidity and stringent norms
Tax Reforms
A. Special Residential Zones on the lines of SEZ for integrated townships
B. Income Tax, Service Tax and VAT exemption for affordable housing scheme similar weighted effect to be given in GST as and when applicable.
C. Stamp duty to be included in GST.
D. All rental income in affordable sector to be tax free.
E. Special incentive for power neutral/reduction and zero discharge building complexes.
F. Remove deterrent provisions of GAAR.
Regulator with Structural Change
A. The regulator has authority to direct concern authority/institution to approve within time frame or takes hearing and give approval or NOC
B. The Regulator to be of the rank of chief secretary or high court judge
C. All issues of real estate customers come under the regulator, and thus multiple litigations in consumer forums, civil courts and competition commission cannot be lodged. Appeal shall vest with high courts
D. All registration to be automatic and online. The regulator can conduct scrutiny of application and ask for compliances without obstructing projects. Only prosecution in fraudulent cases
E. The Regulator then can assist in policy making, assessing stocks and economic impacts and there will be proper policy making assistance to available data as no project can be undertaken without registration
