Mumbai: Under growing
pressure from the Maharashtra government over alleged
investor-unfriendly policies, realtors have threatened to move
shop to neighbouring Gujarat, a representative of the developers
said here Monday.
Confederation of Real Estate Developers' Association of India
president Lalit Kumar Jain criticised the policies in this state,
culminating in the latest proposal to hike land lease rates, which
he claimed "do not encourage investors at all".
"Gone are the days when investors from within Maharashtra and
outside would plan increased involvement here. Now, for quite
sometime, investors are looking outside (this state)," Jain said.
Jain said that the "Maharashtra government's policies will end up
being its 'gift' to Gujarat's upcoming GIFT City".
The neighbouring state is developing a Gujarat International
Finance Tec-City (GIFT City) near Ahmedabad.
GIFT City aspires to be a global financial hub by offering global
firms world-class infrastructure and facilities.
Quoting a latest survey report of 10 Indian cities by Cushman &
Wakefield, Jain said that Ahmedabad had emerged at the top with a
whopping 39 percent of the investments made in those (10) cities.
"As per this report, Ahmedabad attracted about Rs.71,270 crore
investments in various sectors, including realty and
infrastructure. We have every reason to believe that investors are
shying away from Mumbai," Jain said.
He explained that realty had become an expensive affair in Mumbai
due to the government's allegedly unsupportive policies - like
premium on fungible floor space index, restrictions on land use,
increased property taxes and land lease rates.
Citing an expert report 'Top 10 Emerging Business Destinations in
India', Jain said that in the past couple of years, the volume of
investment by various companies in the 10 cities had shot up by
over seven times.
The cities are: Ahmedabad, Bhubaneswar, Chandigarh, Coimbatore,
Jaipur, Kochi, Indore, Nagpur, Vadodara and Visakhapatnam.
He said that response from the CREDAI's 8,800 developers in 20
states revealed that realtors were not too optimistic about
"Gujarat is an hour's flight from Mumbai that is bound to cause
capital flight too," Jain cautioned.
Jain said that even states like Bihar and Punjab had become
investor-friendly, while Andhra Pradesh, Karnataka and Jharkhand
were planning single-window clearances.
"We, the developer community, sincerely hope that the Maharashtra
government wakes up to the reality and starts taking immediate
corrective measures," he urged.