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Vashi2Panvel.Com: Navi Mumbai: June 27: The real estate in Navi Mumbai has witnessed frequent ups and downs since the birth of this twin city. There has been immense hype and hoopla about the booming Navi Mumbai sectors viz. Kamothe, Khandeshwar and Kharghar. But this ‘realty-boom’ seems like a farce. With the recent HC order freezing constructions here, the builders are in a fix. Amidst all this hype, controversies and the recent ‘realty surge’ phenomenon, Vashi2Panvel.Com correspondent met Atul Agarwal Chairman and Trustee (BANM) and Director of Agarwal Group of Builders to get his opinion. Atul Agarwal has been associated with BANM since it was founded in 1986. He joined in as its Secretary, then became the President and is now the Trustee Chairman. Excerpts of interview…

V2P: CIDCO and Navi Mumbai builders have publicized Navi Mumbai as the city of 21st century. Looking at the developments, is it right to call it so?

The government conceived the concept of ‘Twin City’ about 35 years ago to decongest the greater city. Despite several government initiatives, no remarkable development has happened in the real sense to call it the city of 21st Century. The Palm Beach road and the gigantic railway stations here give it a tad better look. However, other infrastructures are not proper and it still looks like a suburb of Mumbai. But there is little cause to worry; with projects like SEZ, international airport, amusement parks etc. in the pipeline the dream of 21st century might come true.

V2P: The Centre’s decision to levy service tax on the construction industry has irked leading builders. Have the builders taken any action?

The government had brought builders under the service tax net in the 2005-06 Budget. We are not liable to pay service tax as the contractor does the actual construction activity. The Maharashtra Chamber of Housing Industry (MCHI) has filed a writ petition in the Bombay High Court challenging the circular by the Central Board of Excise and Customs (CBEC) in 2005. This circular said developers were liable to pay service tax to be added to the cost of a flat in housing complexes with more than 12 units. Our petition is due for admission. In order to meet any eventual liability of service tax we are advising our members to include a clause in agreement for sale with purchasers to the effect that- ‘Service tax as applicable will be charged’.

V2P: Bombay High Court had ordered a freeze on destruction of mangroves in Maharashtra and ban on construction within 50 meters of them. What is your take on this issue?

The government had demarcated the CRZs (Coastal Regulatory Zones) in 1977 after satellite mapping by a Dehradun agency. Mangroves have a natural tendency to grow and shift. The absence of a specific cut off timeline leads to several problems. Earlier builders took it for granted that if CIDCO has allotted a plot to them further formalities are not required. But now, several check points like environmental clearance have been made mandatory which has put many into trouble.

V2P: It has been noticed that several builders do not bother for insurance of labours working for their buildings. Is it true?

As per the law it is the liability of contractors to arrange such insurance and provide them with safety equipments like helmets, safety belts etc. We appoint contractors only after ensuring their past history.

V2P: What are the other problems faced by Navi Mumbai housing industry?

One major issue is about disparity in water rates charged by BMC and NMMC. In Navi Mumbai residential and commercial water charges per unit are Rs. 4.20 and Rs. 30 respectively. If for any genuine reason like legal delays etc. occupation certificate (OC) is not given in time, BMC charges Rs.7, while in Navi Mumbai builders have to pay the regular commercial rate (Rs.30). We have also written to NMMC commissioner about this and we hope they take a remedial action.

V2P: You have been closely observing the growth of this new city for the last 30 years. Tell us honestly about your vision of Navi Mumbai in the next five years or so?

If this city goes on with problems as discussed above it will end up in to a mediocre city or like a typical Mumbai suburb. However we still have a hope. The ‘Advantage Maharashtra’ theme announced by CIDCO ten years back, in which 11 novel projects like airport, SEZ etc. were planned, would definitely benefit the city. Only a practical concept with an honest will and approach can transform this place in to a City of 21st Century.

V2P: Can you tell something about future plans of BANB?

CIDCO has allotted a plot for BANM, where Library, R&D, gymkhana and various other facilities shall be developed. We are also organizing several seminars, forums, and exhibitions to bring awareness in our members and the public.

Umesh Malviya