Project delays: Who\'s responsible, developer or authority?

Some of the issues the real estate sector is grappling with today are delays caused in the delivery of residential projects and the unused stock in the market. Who is responsible for this - the developer or the authorities?

The NGT (National Green Tribunal) has created furor among developers and buyers in Noida and Noida Extension. Projects have been stalled at a time when they were on the verge of completion or nearing possession. This has created a glut of ready or almost ready inventory in the market that cannot be sold!

While buyers are quick to blame the developer in such cases, the slip-up at the concerned authority’s end cannot be completely negated. For instance, in the case of Noida and Noida Extension, the NGT did not raise any objection to the construction of the project till it reached its final stages.

Get the best advice on your property purchase!

If the developer had not taken an No Objection Certificate, it should have been highlighted before construction began. The government’s lack of planning is visible in other instances as well. While the entire country is mourning the lack of housing, there are several projects, under both private and public development, which are lying vacant due to lack of planning on the part of the government.
For instance, while developers move towards the periphery of a city in search of developable land, ideally, the government should take steps to ensure that these locations are well equipped to handle the needs of the future residents. Today, social and physical infrastructure follows habitation when it should be the other way round.

“When we launch a project, we are mandated to be ready with all the facilities such as club houses, parks, swimming pools etc within a period of six years. However, when it comes to providing external roads and other infrastructure, the government takes at least 15 years to build the same,” exclaims Kushagr Ansal, director, Ansal Housing.

There are examples of government authority flats lying vacant, largely for want of social and physical infrastructure. With a housing shortage of almost 18.78 million units (Census 2011), the country has nearly 11 million housing units lying vacant due to lack of takers. Is it not ironical? Who is responsible for this? While in certain cases, the role of the developer for not taking appropriate or complete approvals cannot be negated, intervention required from the government is certainly a key if we are to meet the shortage of housing in our country.

Source:http://content.magicbricks.com/industry-news/delhi-ncr-real-estate-news/project-delays-whos-responsible-developer-or-authority/79713.html