Mysuru: The office-bearers of the National Real Estate Development Council (NAREDCO), Mysuru Chapter, have strongly opposed the State Government’s order mandating Government approval for the development of private residential layouts.

Urban Development (UD) Minister Byrathi Suresh recently issued an order requiring developers to seek not only the approval of local authorities such as the Urban Development Authority and Local Planning Authority but also explicit permission from the Government.

This move has drawn sharp criticism from V.C. Ravikumar, Chairman of NAREDCO, Mysuru Chapter and Treasurer A.P. Nagesh, who argue that the order has pushed the real estate sector into deeper crisis.

The administrative board of the Mysuru Urban Development Authority (MUDA) already includes key officials such as the Deputy Commissioner, City Police Commissioner, Superintending Engineer, Planning Officer of Chamundeshwari Electricity Supply Corporation (CESC) Limited, and representatives from the Urban Water Supply and Drainage Board.

Unnecessary bureaucratic hurdles

Are the MUDA Commissioner, Secretary, Land Acquisition Officer, and Superintending Engineer not part of the Government? Before a layout is developed, a thorough approval process is already in place, including site inspection, obtaining No Objection Certificates (NOCs) from CESC, the Water Board and MUDA, and a final discussion in the MUDA meeting before approval. With multiple layers of verification already in place, this additional requirement only adds unnecessary bureaucratic hurdles, they said.

Rather than simplifying the approval process, this move further complicates it. It raises questions about the Government’s trust on its own officials and their functioning. Moreover, how practical is it for the Government’s Principal Secretary to conduct spot inspections? If this step is truly necessary, what purpose does MUDA serve,  they asked.

The real estate sector plays a crucial role in revenue generation, contributing through Goods and Services Tax (GST) to the Central Government, stamp duty to the State Government, and various departmental fees. It also supports employment, generating jobs for labourers and boosting demand for construction materials.

Currently, Urban Local Bodies (ULBs) are already struggling with infrastructure challenges and inadequate resources. Entrepreneurs face additional hurdles, including Khata-related issues. Yet, despite these challenges, new developers are striving to create high-quality layouts that surpass those developed by MUDA, they argued.

It is unwise to impose blanket restrictions on the sector due to isolated cases of wrongdoing. The real estate industry should not be misrepresented as a ‘racket’; instead, errors should be addressed individually.

A single-window clearance system should be introduced to streamline approvals and curb irregularities. Additionally, members of the Authority should be mandated to conduct spot inspections before approving projects. Regular inspections of residential layouts, along with systematic reporting, should be implemented to ensure compliance, they said.

Instead of stifling the sector with excessive red tape, the Government should focus on meaningful reforms. The recent order has sparked concern among entrepreneurs, raising suspicions that rather than ensuring transparency, it may serve as a tool for exploiting the industry, Ravikumar and Nagesh added.