‘Govt should promote small builders’

Source: The Hitavada      Date: 08 Mar 2017 09:31:31

By Praveen Vighre,

THE real estate sector, which was crumbling due to new Government policies like parking, TDR, delay in sanctions, increase in ready-reckoner rates, had been completely crushed by the demonetisation, said Sunil Choudhari, Director of Shri Aappa Swami Infrastructure, while talking in an exclusive interview with The Hitavada, on Tuesday.

“Demonetisation has made an adverse effect on real estate. Out of our 150 flats scheme launched during Diwali, only 20 flats are booked,” Choudhari said. His firm Shri Aappa Swami Infrastructure had constructed residential areas of more than 5 lakh square feet till date and commercial areas of more than 2 lakh square feet. A pioneer in launching affordable flat schemes in the city, the company still offers flats starting from Rs 12 lakh to Rs 25 lakh.

Choudhari also lamented that other traders were funded with overlimits, loans and advances by the financial institutions. But builders who dealt with 100 per cent secured assets were not being funded by the banks.
“The Government is promoting big corporate companies and crushing small builders. All the Government schemes are against the small builders and the Government must think of promoting small builders. With one scheme, more than 60 ancillary units get business and finally the revenue comes into the Government treasury,” Choudhari said.

According to him, the RERA Act 2016 is the latest example of the Government’s intention. He elaborated that if a builder got booking amount of Rs 5 lakh, the whole amount will go into SCROW Account and the builder will be able to use only 30 per cent of that amount. “How can a builder be able to complete the scheme with only 30 per cent of the amount. There are natural calamities due to which there are problems like unavailability of sand and bricks. Under such circumstances, if there is a delay from the builder’s side, he will be put behind the bars. It clearly indicates that the Government wants to promote big corporate companies only,” Choudhari pointed out.

He also lamented that the local authorities also took long time to give sanctions. “One of our projects is pending for sanction since more than 18 months. All big announcements are made but there is no implementation of it.” His brother Vivek Choudhari, sons Kabir and Ambrish Choudhari were also present.