CHENNAI: Builders in the State are a harried lot as the Tamil Nadu Combined Development Rules (TNCDR) are facing a legal challenge in the Madras High Court (Madurai Bench). Now, approvals for buildings are given with a clause — that it’s subject to the outcome of the judgment in a writ petition filed in court.
“Though we are really happy that the floor space index has been increased from 1.5 to 2 in the State, there is concern because of this uncertainty,” says Builders Association of India (BIA) State treasurer S Ramaprabhu.
He says the approvals are being granted after taking into account the new amendments in the Combined Development and Building Rules of 2019. Explaining the legal hassle, Ramaprabhu says, “Imagine the construction happens as per the new relaxation, and at a later stage the court gives a verdict that is not favourable... What would be the fate of all these constructions? There are a lot of financial implications linked to this.” As a result, many buyers are reluctant about booking new apartments, he adds.
Not just buyers, even banks and financial institutions are reluctant to grant loans for such projects, because of the looming uncertainty. A group of builders have now approached the Housing Secretary to issue suitable orders to officers concerned not to put the clause while stamping the papers. Only such a move can protect small and medium builders, they informed the government.
The court case is based on a petition filed by the Indian Institute of Architects, challenging the State’s decision to combine all the existing building rules formulated under various Acts of corporations, municipalities, town and village panchayats under a new rule as unconstitutional. S Sridharan, chairman, CREDAI-TN Chapter, told Express that the government should push the case to be heard at the earliest, highlight their point of view and bring the case to an end. The housing department officials could not be contacted.