Chennai’s construction approvals are issued through the Chennai Metropolitan Development Authority (CMDA) and the Directorate of Town and Country Planning (DTCP).
In the past, there were complaints that while granting approvals for apartment projects, a charge described as “party funding” was collected at around Rs 27 to Rs 35 per sq ft. Industry sources said political intermediaries would approach developers for such payments, and projects that did not comply allegedly faced delays in approvals.
Developers were said to have added this cost into the final sale price, contributing to a sharp rise in housing prices. The state government has now issued an order that no party funding should be collected for granting building permissions.
The decision has been welcomed by the Confederation of Real Estate Developers’ Associations of India (CREDAI) and the Southern Centre of the Indian Institute of Architects. Construction sector representatives said the move reduces costs for builders and could enable price reductions of up to Rs 100 per sq ft in newly announced residential projects.
