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14 May 2024, Edition - 3227, Tuesday

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Coimbatore

Demonetisation hits realty sector harder: BAI

Covai Post Network

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Construction activities and sales of villas and apartments across the country had been hit had, especially after demonetisation, according to Builders Association of India (BAI) president HN Vijaya Rghava Reddy.

“It is not good. Both, sales and construction activities are very dull across India,” Reddy, here in connections with the installation of the new chairman of the Coimbatore chapter, told mediapersons.

Though there could be many reasons for such a phase, demonetisation had a major role for sales falling more than 40 per cent compared to last year, he said.

BAI had urged the government to set up an exclusive ministry for handling the affairs of the building industry and redressing its grievances, he added. Builders had to approach multiple government agencies and this led to a lot of delay in getting approvals from these departments, he pointed out. It was in this backdrop that the association had sought simplification of procedures and introduction of a single window system to clear project approvals.

Former BAI national president R Radhakrishnan alleged that there was a nexus between politicians, officials and middlemen as far as sand mining was concerned and escalation of prices in the State. Despite a government order allowing m-sand in construction industry in 2011, officials were not allowing to use of the material, though it was cheaper by 60 per cent, he added.

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