Licence renewal for Gurgaon builders to get tough

GURUGRAM: Getting the licence renewed for a real estate project will become more difficult than before, with the state government making norms more stringent, for the benefit of buyers.

The department of town and country planning (DTCP) has issued fresh guidelines for licence renewal of real estate projects. Along with the application for renewal, developers will have to submit details of complaints against it pending before the Allottee Grievance Redressal Forum (AGRF), the project’s development stage with photographs, and specify details of the development stage — in progress, held up or nearing completion — along with details of the number of labourers working at the project site, for the department’s scrutiny. In case there are complaints pending before the AGRF, or there is a negative field report, licence will not be renewed.

Once the developer submits an application, DTCP will call for a project report from the concerned field officer, before approving or rejecting the plea. “We’re trying to streamline the licence renewal process and bring more transparency to it,” said DTCP director T L Satyaprakash, adding the objective is to ensure speedy project completion and quick resolution of buyers’ grievances.

Assistant town planner (ATP) R S Batth, who has played a crucial role in resolution of buyers’ issues through AGRF, said, “The field report will provide a clear picture about the project at the time of licence renewal.”

Until now, renewing licence for a project was fairly easy. Developers would apply for it without bothering about delays, etc. “There are cases where the developer hasn’t completed a project 10 years after its launch. The new guidelines will put pressure on the developer to take consumers’ complaints seriously, and to complete projects on time,” said real estate expert Pradeep Mishra.

Home buyers welcomed the move, hoping it will lead to timely completion of projects. “In some cases, developers have been known to show little interest in completing projects and pay no heed to buyers’ grievances,” said Gaurav Prakash, who had invested in a flat on Dwarka expressway, which is stuck in litigation.

Earlier in January, the government made it mandatory for builders, wanting to transfer development licence, to inform allottees about the proposed change through advertisement, company website and individual emails. “These steps are aimed at preventing misuse of project licences, and ensuring they are delivered on time,” said a DTCP official.

With these changes, the department feels only serious players will ask for change of land use and project licences, thus protecting investment of buyers and allottees. “This will also ensure ownership of projects doesn’t change hands frequently, and projects get completed on time,” the official added.

Credits ET Realty

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