We have presented a submission memorandum to the government to implement several reforms that would help streamline the real estate development process in the Bengaluru region. These amendments aim to address the challenges faced by developers and improve the overall efficiency and sustainability of the real estate sector.
Key areas of focus include providing clarity on the transferable development rights (TDR) issue that has been long pending and simplifying the regulations. Currently it is a very cumbersome and tedious process. By simplifying this and ensuring that the development rights certificate (DRC) is undertaken at the prevailing guidance value, it would bring in confidence, as the Planning Authorities can acquire land for infrastructural projects and the landowner giving up the land will not be disadvantaged when the TDR certificate is issued.
Streamlining plan approvals is another priority, with measures such as implementing a single window system for obtaining No Objection Certificates (NOCs), reducing approval fees that are currently linked to guideline value, and standardizing zoning regulations across the various planning authorities to bring in synergy and ease of doing business. To improve efficiency, we proposed eliminating unnecessary procedures like commencement certificates, standardizing buffer zones especially for a city that has moved away from an agrarian economy to a tech capital and incorporating new uniform zonal regulations for the entire Bengaluru Metropolitan Region.
Reducing financial burdens is also essential, and lowering stamp duty rates for Joint Development Agreements and for Mortgage of Title Deeds which recently has been increased on ad valorem basis without any cap is reccommended. Additionally, implementing a staggered payment scheme for remittance of labour cess since the construction happens over a period of time is suggested.
