SESSION REPORTS - Global Real Estate Institute

TopicTimeVenueAttended by:SEZ & CRZ - too regulated for their own good?16h30 - 17h45Princes Room, Taj Mahal Palace1) Gian Bansal, Uppal Developers2) Sumit Nanda, Dr. Fresh Assets3) Ravi Ahuja, Cushman and Wakefield India4) Saumya Meattle, Greenspace Technology ParkSpecial Economic Zone (SEZ) - Tb_ ariuj uh[hcgiusfy [ar__^ tb[t SEZ’s [r_ bcabfy r_auf[t_^ [h^ tb_ bcabinvolvement of the regulators is delaying projects. Regulators monitor the project expenses intricately e.g. whether[r]bct_]t `__s sbiuf^ \_ t[x _x_gjt ir hit. Furtb_r r_auf[tir’s high level of involvement disrupts several businessdecisions which now require regulators approval. As a result, the SEZ space may become instable.There have been several occasions where the lack of clarity is causing unrest in the industry. Though the commercegchcstry w[hts ti ch]r_[s_ _xjirts \y jrivc^cha t[x bifc^[y ti SEZ’s \ut tb_ t[x f[w jut tia_tb_r \y tb_ ^_j[rtg_ht i`revenue makes it very difficult to avail tax benefits.The non-processing area is currently positioned for residential use but only for employees working in the SEZ. Suchrestriction causes high uncertainty on marketing and development front. It is highly uncertain if the employees workingin SEZ would want to live in the adjacent residential complexes. The tenant leases are signed after the SEZ is completedso the sale of residential component is postponed until leases are signed which makes the residential project highlyunattractive.Coastal Regulation Zone (CRZ) – The CRZ regulations were put in place to primarily protect flora & fauna along thesea coast and protect the developments along the shore from the increasing water level. As the policy was designed bythe central government, it lacked input from the local government and several local issues were ignored. As a result theinitial policy was uniform for all coastal areas in India – same for densely populated Mumbai and sparsely populatedKerala (especially along the coast). However the same was considered and the policy was adapted for Mumbai. Thepolicy encompasses regulations for buildings that fall in various CRZ zones. The policy allows the development tofollow the local municipal regulation guidelines thus avoiding any sort of confusion. As the policy got approved recently,it is yet to be observed how it impacts the project development.At tb_ _h^, tb_ ariuj f[ra_fy `[viur_^ tb[t SEZ’s [r_ gchut_fy r_auf[t_^ [h^ ct ][us_s uh^u_ uhr_st `ir tb_ jrid_]tdeveloper.Page 9 / 23