A recent decision by the TRS led Telangana government is sending chills across the spine of realtors and sellers.
KCR’s decision to stop registrations for construction activities that do not have HMDA and DTCP permissions will pose a major threat to the construction sector. This has resulted in a loss of registration revenue of Rs. 40 crores on a daily basis to the Govt. The previous Thursday and Friday witnessed an all time low of less than Rs. 20 crores.
Buying plots in layouts that adhere to HMDA and DTCP guidelines is a costly affair that most of the middle class people skip. Instead they opt for more economical layouts which don’t have these permissions. Now with this latest decision by the government, people will totally stop buying from such non-approved layouts and the ones who had already bought will be unable to resell their plots. Even though government officials are hoping that this decision would streamline the buying behaviour of people, the real estate sector is deeply worried that their business would bite the dust.
Until now, registrations never stopped even in the absence of LRS and BRS permissions. This made people buy homes in layouts without HMDA and DTCP permissions. But the new mandatory regularization mandate is irking both the buyer and seller communities. Telangana government thinks that there is an absolute need for ironclad rules like these for long time benefit of the buyers and they are even ready to revise the entire act if they get a demand from both the sections. But for now, the government is keen to generate revenue through hike in application fee and fines levied over irregularities.
