CREDAI West Bengal Letter for Waiver to State government
In a letter for relief due to Covid-19, on Building plans approval fee / charges, Sushil Mohta, President, Credai, West Bengal has written to the West Bengal government for full hearted support. The contents of the letter as shared with Realty+ are as follows - “Due to COVID 19 all the construction sites of various Real Estate projects have been closed since last month. Even after lifting the lockdown, it will take quite some time to restart the work on the project. The ailing Real Estate Industry has got perhaps the biggest blow ever, due to the current situation, resulting in a serious financial crisis. The funds are completely dried up with almost all the developers, as such, many of the projects will suffer due to the financial crisis. Most of the construction workers have left for their village and we apprehend that even after the lifting of lockdown, many of them will not return soon. Further there will be disruption in the supply of construction materials, particularly those which are coming from out of state. Due to lockdown most of the factories are closed, production is hampered. It will take some time for these factories to start their production cycle and again the logistics will also take time to normalise. Therefore, It will not be wrong to estimate most of the projects will be delayed by 6 months to one year. Sirs, at this stage, we need full hearted support of the authorities at all levels, be it municipality, municipal corporation, State Government and Central Government and we would like to pray for the followings: 1) Automatic extension of validity period of all approvals from different departments including building sanction plans for atleast one year, without any charges for such extension/renewal. There should be a deemed extension of one year for all the approvals which were valid on 1st March 2020. 2) Developers are facing serious fund crisis, as such, for all new sanctions, we request to reduce, by 50% atleast, all kinds of fees and charges payable at the time of sanction to the municipal authorities and other concerned authorities. We hope to get a positive response to save this ailing real estate industry, which has already been a huge contributor to revenue and job creation.”
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