Tamil Nadu Builders: Permit Suspension Halts Hundreds of Construction Projects
The real estate and infrastructure sector in Tamil Nadu is facing a significant crisis, with hundreds of construction projects reportedly stalled over the past eight weeks. This comes after authorities allegedly stopped granting permissions for transporting excavated earth from approved construction sites, according to a representation sent by the Confederation of Real Estate Developers' Associations of India (CREDAI) to the state's Chief Secretary.
The letter, signed by CREDAI Chennai President Mehul H Doshi, acknowledges the Tamil Nadu government's efforts to eliminate corruption and improve transparency. However, it states that the "suspension and non-grant of permissions for transportation of excavated earth generated from approved construction project sites" has created serious operational difficulties, particularly in and around Chennai.
CREDAI warns that the disruption is delaying project execution and completion timelines, potentially leading to violations of commitments made to the Tamil Nadu Real Estate Regulatory Authority (TNRERA). The organisation also highlights risks of litigation from homebuyers over delayed possession, escalating project costs due to rising input prices, mounting financial stress on developers, and a cascading impact on employment and allied industries.
To address the issue, CREDAI urges the government to establish an efficient mechanism for the expeditious processing and grant of permissions, as well as a streamlined, transparent, and time-bound approval mechanism that would allow legitimate projects to proceed while maintaining regulatory oversight.
A leading builder, speaking on condition of anonymity, told NDTV that no new excavation has begun at approved sites as collectors do not grant permission. The builder alleged that previously, bribes of around Rs 5 lakh were paid for such permits, but the government's recent efforts to make approvals hassle-free have been welcomed. He stressed the need for the Chief Minister to ensure a transparent, time-bound system for permission to transport excavated earth is implemented immediately.
The builder also claimed that the uncertainty has left heavy machinery idle, increased financing costs, and delayed several residential and commercial projects. NDTV attempted to reach the concerned minister and secretary for comment, but no response was received.
