Builders demand relief on mortgage clause; seek RERA office

Hyderabad: Members of the Telangana Builders Federation (TBF), on Friday, raised certain demands to boost the construction industry in the state. Among builders’ demands are a two per cent cut in stamp duty, an exemption from the mortgage clause and a quick action on setting up a RERA office in the state.

Speaking at the third annual general body meet of TBF, C Prabhakara Rao, president of TBF, made an appeal to the Telangana government, seeking the setting up of a RERA office or at least a RERA counter where builders can submit relevant files at the earliest. “Our state has 10 per cent mortgage clause for issuing of building/layout approvals to control the deviation of building by-laws. Now, since RERA has come in to force, and there is no scope for the deviation by builders. We want the government to exempt the buildings, which are registered under RERA, from the mortgage clause. This will help us by freeing up 10 per cent of our cash flows,” said Rao.

While explaining a few policy measures such as demonetisation, Goods and Services Tax (GST) and Real Estate (Regulation and Development) Act and their impacts on the construction industry and revenues to the state government, J Venkat Reddy, general secretary of TBF also requested the immediate setting up of a RERA office, in order to facilitate builders’ cooperation.

Addressing the TBF annual meeting, IT and MAUD minister K T Rama Rao, pointed to a slew of infrastructure enhancement and beautification projects that the state government will soon undertake. “A clutch of infrastructure projects like four major express flyovers are on the verge of being started in Hyderabad and the future is bright for the construction industry in the state. Hyderabad is also set to host three major global events from November 2017 to March 2018, namely the Global Entrepreneurship Summit, Indian Science Congress, and World IT Congress and the city would be spruced up with enhanced infrastructure and beatification projects involving outlay running into hundreds of crores. White topping of 290 km length of important roads in the city would be completed within the next two years taking Hyderabad closer to its goal of emerging as a global city,” Rao said.


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