Delhi-NCR Developers bat for exemption from the construction ban

12 Jan 2023 CW Team

“Practically, once construction activity ceases, it takes more than 15 to 30 days to resume full-fledged operations; consequently, in a nutshell, it would not be incorrect to note that construction is prohibited for two and a half months. Experts estimate that a "construction ban" lasting one week has an impact on a "construction site" for more than a month, resulting in a significant loss for real estate firms, laborers, vendors, ancillary businesses, and government revenue, according to Manoj Gaur, President of CREDAI-NCR.

According to developers, the laborers employed on construction sites will be directly affected by this ban for the first time. The workers come to Delhi NCR from a variety of states. When they become unemployed as a result of the frequent ban on construction in Delhi NCR, they return to their respective states, which, in addition to causing them to become unemployed, delays the process of handing over the apartment to affluent homebuyers.

We have pleaded with the minister to permit activities that do not pollute. Additionally, the sectors suffer from frequent bans, and the government ought to announce in advance that no construction will be permitted in the NCR during this time of year, according to Harsh V Bansal, convenor of the CII Delhi Sub-committee on Real Estate, Urban Development, and Infrastructure.

According to the industry body, vendors and ancillary businesses that sell construction materials like steel, paint, plywood, and cement can't sell during the ban, which costs the government GST.

Developers do not even get the "time extension" benefit against "time-loss," delay in construction, and delayed possession to homebuyers, which even attracts the "delay penalty" at the time of possession because the ban on construction activities due to pollution is not recognised by RERA, the development authorities, or the town planning department.

The issue and impact of an ad hoc blanket ban on all construction activities are distinct. Lalit Aggarwal, Co-founder and Vice Chairman of Signature Global, stated, "It not only adds to the cost of construction but also delays the project."

According to Aggarwal, "Given that, most projects have a completion deadline as per RERA compliance, even for affordable housing projects, where there is a statutory timeline of four years to complete the project, such bans every year cumulatively delay the project significantly."

According to CREDAI, RERA-registered projects shall be considered a public interest project because they strictly adhere to government guidelines to minimise pollution and involve the general public's interest.

Developers of real estate have urged the central government to consider RERA-registered projects to be in the public interest and to permit the work to continue even if pollution levels rise. Developers met with Minister of Environment, Forest, and Climate Change Bhupender Yadav, who informed them that construction and demolition have already been prohibited for 29 days this winter.“Practically, once construction activity ceases, it takes more than 15 to 30 days to resume full-fledged operations; consequently, in a nutshell, it would not be incorrect to note that construction is prohibited for two and a half months. Experts estimate that a construction ban lasting one week has an impact on a construction site for more than a month, resulting in a significant loss for real estate firms, laborers, vendors, ancillary businesses, and government revenue, according to Manoj Gaur, President of CREDAI-NCR.According to developers, the laborers employed on construction sites will be directly affected by this ban for the first time. The workers come to Delhi NCR from a variety of states. When they become unemployed as a result of the frequent ban on construction in Delhi NCR, they return to their respective states, which, in addition to causing them to become unemployed, delays the process of handing over the apartment to affluent homebuyers.We have pleaded with the minister to permit activities that do not pollute. Additionally, the sectors suffer from frequent bans, and the government ought to announce in advance that no construction will be permitted in the NCR during this time of year, according to Harsh V Bansal, convenor of the CII Delhi Sub-committee on Real Estate, Urban Development, and Infrastructure.According to the industry body, vendors and ancillary businesses that sell construction materials like steel, paint, plywood, and cement can't sell during the ban, which costs the government GST.Developers do not even get the time extension benefit against time-loss, delay in construction, and delayed possession to homebuyers, which even attracts the delay penalty at the time of possession because the ban on construction activities due to pollution is not recognised by RERA, the development authorities, or the town planning department.The issue and impact of an ad hoc blanket ban on all construction activities are distinct. Lalit Aggarwal, Co-founder and Vice Chairman of Signature Global, stated, It not only adds to the cost of construction but also delays the project.According to Aggarwal, Given that, most projects have a completion deadline as per RERA compliance, even for affordable housing projects, where there is a statutory timeline of four years to complete the project, such bans every year cumulatively delay the project significantly.According to CREDAI, RERA-registered projects shall be considered a public interest project because they strictly adhere to government guidelines to minimise pollution and involve the general public's interest.

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