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The real estate industry has reached a level of acceptance regarding the new jantri rates, but there is a significant challenge impeding the progress of several projects. This hurdle stems from the confusion surrounding the utilization of transferable development rights (TDR). Currently, many projects are stuck at the plan passing stage as developers and authorities struggle to understand the implications of the revised jantri rates.
To shed light on this issue, let's delve into the background. In 2013, a circular was issued specifying that the TDR acquired through slum redevelopment would be subject to the jantri rates applicable at the time the redevelopment tender was issued. Builders could either utilize the TDR for their new projects or sell it to other developers, all at the respective jantri rates.
However, things took a turn after the revision of the jantri rates on April 15. The state government released a circular indicating that TDR obtained before this date for projects initiated prior to it would still be subject to the old jantri rates. This sudden change has caused significant confusion as real estate developers are now unsure whether they can utilize their TDR at the old jantri rates for projects launched after April 15.
Consequently, numerous projects have been awaiting approval as the Ahmedabad Municipal Corporation (AMC) seeks clarification from the urban development department regarding the calculation of jantri rates for TDR utilization after April 15.
The president of Credai Gihed Ahmedabad, Tejas Joshi, emphasized the urgent need for clarification on this matter. He elaborated, highlighting the provisions of the 2013 circular, stating that the jantri rate remains fixed based on the date mentioned on the TDR certificate.
Consequently, the utilization of TDR should be calculated using the old jantri rates for certificates issued before April 14, 2023. Unfortunately, due to the ambiguity surrounding the utilization of TDR certificates issued before April 14 for projects planned after this date, numerous files remain pending. Consequently, the AMC has reached out to the urban development department in search of a definitive explanation.
Insiders familiar with the situation have disclosed that many developers acquire TDR from the open market and employ it for their projects. Prior to the implementation of the new jantri rates, developers submitted their plans to ensure they would benefit from the premium Floor Space Index (FSI) based on the old jantri rates. However, this has resulted in clearance issues during the plan passing stage for a considerable number of projects due to the perplexity surrounding the utilization of TDR.
While the real estate industry has reconciled with the new jantri rates, the confusion surrounding the utilization of TDR has posed significant challenges. With several projects stuck at the plan passing stage, prompt clarification from the authorities is crucial to facilitate progress in the sector. The resolution of this matter will not only benefit developers but also ensure a smoother and more transparent functioning of the real estate market in Ahmedabad.
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