Why Lucknow developers are asking the govt to change housing policy?

Q: What is the issue in Lucknow housing policy? Why they are asking to revise it now? Any idea?

Ketan, Thane

23rd February 2013

Real estate News in Lucknow

housing policies

lucknow real estate

developers in lucknow

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Replies (5)

Hye guys, not only this but there are other norms in the policy which developers are not happy with.. One clause says that there should be a minimum of 5 units per acre of the scheme. And in case a developer is not able to develop EWS/LIG units in that particular area, he has to build them within 1 metre radius of that location. Completion certificate will be provided by the LDA only if the developer completes construction of EWS/LIG units.

Neeraj Rao,

6th March 2013

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Hey Kunal.. LDA officials said that this clause is needed to maintain transparency in the system.. It ensures that the developers will not breach construction norms and allocate required percentage to weaker sections as promised. Currently, there would be around 50 such housing projects in Lucknow.

Rajiv,

6th March 2013

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The developers are unhappy with this rule as it incorporates high cost burden on them to pay a huge amount as bank guarantee to Lucknow Development Authority (LDA) at the very beginning. They should pay huge bank guarantee equivalent to the total amount of land cost plus the construction cost of these units. They say that if they are forced to pay 100% bank guarantee, they are left with too little money to construct the project. This is actually a big issue for the builders.. I dont understand how the LDA has set this kind of clause..

Kunal,

6th March 2013

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What is the problem with the existing policy>? I think that also has some percent reserved for all these. Then why are they planning to change it?

Govinda,

5th March 2013

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Uttar Pradesh government has planned to revise housing policy in favour of developers for reserving certain percentage of units for economically weaker sections (EWS) of the society in their housing projects on above 3,000 square metres of land. The policy will be made applicable to both group housing and plot development projects.

Neeraj Rao,

5th March 2013

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