Government should be facilitator instead of regulating
Satish Magar, President CREDAI Maharashtra
SC. Is the new ULCA in making?
SM : If you look at various reforms, land reforms need urgent government policy. The government need to play a role of facilitator. Let the market forces decide about the fair market value of land. Nobody is forcing land owners to sell. Its a fair deals.
We need land for urbanisation. We need land for public purposes. The density of population is increasing. Mcsensy report have said that we will have 60% of population in urban centres. Hence we need land, if not then government should give us cross subsidy by enhancing the FSI. If MHADA can have 2.5 FSI why not private developers?
SC : Do you think government’s cross subsidy will help ease the land holdings?
SM : I am saying that we give 36% of total earnings as taxes to government which includes VAT, Service Tax, etc. . If government subsidies the norms in FSI it will reduce the burden of land purchase in urban centres. If MHADA can have 2.5 FSI why not private developers?
SC: Can we restrict inflation in land prices?
SM : As I Said, government should cross subsidies the land or FSI, let the market be free for all private deals. I am not talking about government’s indulgence into land purchase of public purposes but let the economy be free for natural market forces. Why private land deals needs supervision?
SC: What is the principle arrangement between Magarpatta Company and its stock holders?
SM : We had given shares to land owners according to the proportionate shares of land. We had a very transparent system of corporatised land holding pattern. We developed the twonship and all the land owners are share holders of the company. The system worked.
SC: Since you have completed Magarpatta Ciy and started giving possession of Nanded City, what is the demand for and what type of people buying homes from you?
SM: 2 BHK is much in demand. We constructed 1 BHK just for statutory requirement but the demand is less. Young and second generation buyers are purchasing and they are having great taste for the real estate.
