Just when most of the Real Estate projects are at fag-end of construction and developers have arranged for labour, money and material, NGT has banned the construction activities to curb the Air pollution in Delhi NCR.
Delhi has been suffering from Air pollution for over past two decades!!
Earlier, Public Transport running on diesel fuel was converted into CNG vehicles to curb vehicular pollution.
Then, factories were shifted out of Delhi to curb air pollution!
Later, Yamuna river cleaning proved to be a futile exercise!
In last 20 years, the Government of Delhi NCT could not chalk out a decisive policy to curb Air and water pollution despite being pulled up by Hon'ble Delhi High Court on various occasions.
The already failed 'Odd-Even Car formula' has been compelled upon Delhites time and again. The Delhi Govt along with Central Govt could not stop the traffic and pollution menace created by Trucks entering Delhi.
There have been various reasons for Air pollution but, it seems that only the Real Estate is the scapegoat for anything and everything.
In last few years, the Government and Hon'ble Courts have acted on isolated basis to address the problem of Air pollution in Delhi NCR.
This most important barometer of the Economic growth is constantly at the receiving end for anything happening in the Social, Political, Economical or Environmental arena.
Just after 2009, when most of the real estate projects were in crucial stage of structure construction, political baby 'MNERGA' took away major amount of labour, which was working on the real estate projects.
Please note that the Real Estate Sector is a labour intensive sector and is the second largest employer in the country after Agriculture sector. Due to lack of adequate number of labour, sector suffered and projects got delayed.
At the same time, real estate sector got worst hit by the global economic slow-down. The cost of funding jumped by 2-3 times and impacted the real estate projects in worst manner.
All through the developers have been under tremendous pressure to keep the projects and jobs in the sector floating and arrange funds from non-banking finance sector at exorbitantly high-interest rates, because RBI issued guidelines to banks to "not to lend to real estate sector".
The Real Estate Sector does not have an 'Industry' status, hence it gets red-flagged in bank's book of accounts and suffers with NPA issue!
Then another political drama on 'Land Acquisition' took a toll on the real estate project development as agitated farmers halted the construction activities at various real estate projects in and around NCR.
Delhi NCR took the worst hit and paid the price for being geographically close to the political corridors!!
Till date there is no clarity on Land Acquisition Act or procedure!!
The Construction is otherwise also obstructed throughout the year. Post June, its both monsoon and the festival season, which hurts the pace of construction of projects! Realistically, construction takes place only for 8-9 months in a year, at good pace!!
Then, at the final stage of Construction, came NGT order, which halted projects in Noida.
Then came the era of Consumer Activism, which was well supported by Hon'ble Courts and by-and-large all major developers were at the receiving end of court verdicts. Many developers went over-board and ignored various compliances and regulations. The consumers were taken for a ride and arbitrary decisions by developers intimidated the customers.
The sales came to almost a standstill and things haven't improved much!! The end-users are sitting at the fence waiting for sky to be clear!
Almost, in all of these projects civil construction is completed and internal finishing is going on, which does not produce so much dust and pollution!!
Now, at the fag-ends of project completion the NGT decision brings the construction activities to halt and it would delay the Real Estate projects.
Also, implementation of RERA authorities is taking time and due to lack of clarity, the developers are apprehensive of launching new real estate project.
The ill-informed, myopic view on the sector is killing the sector by killing the investments in the sector and shattering the dreams of common man to own their houses and employees in the sector are losing their livelihood!!
Its high time, the Governments should realise the importance of a collective, cohesive and comprehensive approach towards sorting out issues related to the Real Estate sector and help the major contributor the nation's GDP and the second largest employer of the country!!
http://realty.economictimes.indiatimes.com/news/industry/realtors-oppose-ban-on-construction-work-in-delhi-ncr/55325372
Disclaimer: These are my personal views in my personal capacity.
Delhi has been suffering from Air pollution for over past two decades!!
Earlier, Public Transport running on diesel fuel was converted into CNG vehicles to curb vehicular pollution.
Then, factories were shifted out of Delhi to curb air pollution!
Later, Yamuna river cleaning proved to be a futile exercise!
In last 20 years, the Government of Delhi NCT could not chalk out a decisive policy to curb Air and water pollution despite being pulled up by Hon'ble Delhi High Court on various occasions.
The already failed 'Odd-Even Car formula' has been compelled upon Delhites time and again. The Delhi Govt along with Central Govt could not stop the traffic and pollution menace created by Trucks entering Delhi.
There have been various reasons for Air pollution but, it seems that only the Real Estate is the scapegoat for anything and everything.
In last few years, the Government and Hon'ble Courts have acted on isolated basis to address the problem of Air pollution in Delhi NCR.
Just after 2009, when most of the real estate projects were in crucial stage of structure construction, political baby 'MNERGA' took away major amount of labour, which was working on the real estate projects.
Please note that the Real Estate Sector is a labour intensive sector and is the second largest employer in the country after Agriculture sector. Due to lack of adequate number of labour, sector suffered and projects got delayed.
At the same time, real estate sector got worst hit by the global economic slow-down. The cost of funding jumped by 2-3 times and impacted the real estate projects in worst manner.
All through the developers have been under tremendous pressure to keep the projects and jobs in the sector floating and arrange funds from non-banking finance sector at exorbitantly high-interest rates, because RBI issued guidelines to banks to "not to lend to real estate sector".
The Real Estate Sector does not have an 'Industry' status, hence it gets red-flagged in bank's book of accounts and suffers with NPA issue!
Then another political drama on 'Land Acquisition' took a toll on the real estate project development as agitated farmers halted the construction activities at various real estate projects in and around NCR.
Delhi NCR took the worst hit and paid the price for being geographically close to the political corridors!!
Till date there is no clarity on Land Acquisition Act or procedure!!
The Construction is otherwise also obstructed throughout the year. Post June, its both monsoon and the festival season, which hurts the pace of construction of projects! Realistically, construction takes place only for 8-9 months in a year, at good pace!!
Then, at the final stage of Construction, came NGT order, which halted projects in Noida.
Then came the era of Consumer Activism, which was well supported by Hon'ble Courts and by-and-large all major developers were at the receiving end of court verdicts. Many developers went over-board and ignored various compliances and regulations. The consumers were taken for a ride and arbitrary decisions by developers intimidated the customers.
The sales came to almost a standstill and things haven't improved much!! The end-users are sitting at the fence waiting for sky to be clear!
Almost, in all of these projects civil construction is completed and internal finishing is going on, which does not produce so much dust and pollution!!
Also, implementation of RERA authorities is taking time and due to lack of clarity, the developers are apprehensive of launching new real estate project.
The ill-informed, myopic view on the sector is killing the sector by killing the investments in the sector and shattering the dreams of common man to own their houses and employees in the sector are losing their livelihood!!
Its high time, the Governments should realise the importance of a collective, cohesive and comprehensive approach towards sorting out issues related to the Real Estate sector and help the major contributor the nation's GDP and the second largest employer of the country!!
http://realty.economictimes.indiatimes.com/news/industry/realtors-oppose-ban-on-construction-work-in-delhi-ncr/55325372
Disclaimer: These are my personal views in my personal capacity.
