No approvals for new residential layouts; project planning and execution halted

Mysuru:  The Mysuru Urban Development Authority (MUDA), which was recently renamed as the Mysuru Development Authority (MDA), has not convened a single meeting in past six to seven months — an administrative vacuum that has severely impacted city’s real estate sector and dented Government revenue.

Deputy Commissioner G. Lakshmikanth Reddy, in his capacity as MUDA Chairman, had chaired the last general meeting on Nov. 7, 2024. That meeting focused extensively on the controversy surrounding site allotments given as compensation in a 50:50 ratio. It turned out to be the final session before the Authority’s rebranding.

Though MUDA was formally dissolved and replaced by MDA last month, the formation of the new administrative board remains incomplete. As a result, no general meeting has been held under the new banner, leaving developers anxious and projects in limbo.

The real estate sector — one of MDA’s main sources of revenue — is now witnessing a slowdown. The absence of timely meetings has stalled approvals for new residential layouts, halting project planning and execution.

Developers are reeling under mounting financial pressure due to rising loan interests and shrinking returns on investment. Delays have also eroded trust with customers, as developers struggle to deliver sites on time.

Industry representatives have raised concerns that the prolonged uncertainty is discouraging fresh investments and dragging down related business activities. Banking transactions linked to new projects have also been affected.

Government coffers are now feeling the pinch as this revenue stream has dried up.

Developers warn that if bottleneck persists, the additional financial burden will be on site buyers, upping property prices.

Introduce a single-window system

The absence of MDA meetings for the past six to seven months has caused significant losses for developers. Since the Deputy Commissioner also serves as the Chairman of the MDA, a circular meeting can be convened immediately to start accepting applications, with formal approvals granted in the next Authority meeting. This would help clear all pending files efficiently.

It is crucial to introduce a single-window system within the Authority to simplify and speed up all procedural workflows. Even if monthly meetings are delayed, eligible files can still be cleared as per the rules. This will ensure that layout development continues without interruption and that the Government’s revenue stream remains unaffected.

— A.P. Nagesh, Managing Partner, APN Properties