Real estate project under construction in Maharashtra
The Maharashtra government has withdrawn a circular issued in May 2023 concerning the levy of royalties on minor minerals during land development. This decision aims to alleviate the pressure on developers who have been entangled in legal disputes arising from the previous framework, which faced inconsistencies with established court judgments.
The earlier circular had created a complex environment for real estate projects, leading to increased compliance costs and legal uncertainties for developers. By rescinding the policy, the state government acknowledges the need for a more robust and legally sound approach to managing minor mineral extraction in development projects.
A spokesperson for the Maharashtra government stated that a new, transparent framework will be formulated after careful consideration of all judicial directives. This process is expected to ensure that the regulations align with legal precedents and provide a clear path forward for the industry. In the interim, a revised procedure for granting excavation permits will be introduced to maintain operational continuity while a new policy is developed.
This move is anticipated to provide significant relief to the real estate and construction sectors in Maharashtra, potentially unblocking stalled projects and reducing the financial burden associated with ongoing legal battles. The industry awaits the introduction of the new framework, which is expected to foster a more predictable and favorable investment climate.
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