Kolkata homebuyers may get relief as 60% of stalled projects near clearance

Kolkata homebuyers awaiting the resumption of construction on stalled real estate projects could soon get some relief, with over half of projects under scrutiny expected to get approval. Around 60% of nearly 600 projects are expected to receive clearance within days, while most of the remaining projects are likely to get the green signal before August 15, CREDAI West Bengal president Sushil Mohta said.

The scrutiny was ordered by the Kolkata Municipal Corporation for projects above four floors following the collapse of a warehouse at Taratala. Construction work on the projects was suspended for revalidation because their approvals had been issued under the previous TMC government.

The progress in the review could allow construction activity to restart on a large number of projects. Around 330 projects have already received the go-ahead from the technical committee and are awaiting clearance from the high-level committee, Mohta said after a CREDAI delegation met Chief Minister Suvendu Adhikari.

Mohta said the government had made "significant progress in a short time" in reviewing the proposals. He also appreciated the consideration of time-bound undertakings for minor deviations, which would allow stalled work to resume while ensuring compliance.

But some projects are unlikely to clear the process. Sources said around 120 projects have not submitted the required forms, while about two dozen projects are likely to receive notices over flaws and are unlikely to secure clearance. The civic body has not officially commented on the matter.

The developments are significant for a real estate sector that attracts around Rs 20,000 crore in annual investment in the state and contributes approximately Rs 7,000 crore to the exchequer, CREDAI said. The sector is also the second-largest employment generator after agriculture, supporting nearly 50 lakh livelihoods.

CREDAI Kolkata president Apurva Salarpuria said that the government's approach would help restart construction activity, benefiting the sector's supply chain and the large workforce dependent on it. Sidhart Pansari, past president of CREDAI Kolkata, said the proposed reforms in industrial policy, land laws and approval systems would help create a stronger investment ecosystem and support long-term urban development in the state.