The Gujarat government’s draft jantri shows a significant jump of 200% to 400% and, if implemented, will severely impact redevelopment projects across the state.
Real estate experts say that many developers have already begun informing concerned societies of potential revisions to redevelopment proposals, preparing them for reduced benefits.
Kirti Patel, secretary of Birju Apartments near Panjrapole Crossroads, shared that their developer has already informed them of a second revision of their offer due to the proposed draft jantri.
“When the jantri was revised in April 2023, the developer had to reduce the offerings to the society. Initially, he was offering 3-BHK flats in exchange for 1-BHK flats. At that time, we had to compromise on the gift money; now the same situation has arisen again,” said Patel.
She added, “While his initial offer was genuine and acceptable, everyone had agreed. Now, with this revision, the biggest sufferers are the society members as the project will be further delayed. The government must keep the concerns of societies like us in mind while making such decisions.”
Widespread impact
There are over 400 societies in Ahmedabad alone undergoing redevelopment at various stages, and many face similar challenges due to this proposed change.
Jitendra Shah, president of the Urban Redevelopment Housing Society Welfare Association, said, “Almost all developers in Ahmedabad have put their redevelopment processes on hold due to the uncertainty surrounding the proposed draft jantri.”
Shah, who is also in talks with multiple societies for redevelopment, added, “Developers like us have to revise the benefits discussed with the beneficiaries (residents); either by reducing the size of the new house, eliminating goodwill money, or adding commercial development to the project.”
Viral Shah, vice president of CREDAI Ahmedabad GIHED, told Mirror, “We are compiling data of all the areas in Ahmedabad, including commercial, residential and affordable segments, which we will submit to the government with the problems and solutions. But in principle, redevelopment projects need special attention.”
He added, “Ideally, the government must levy only registration charges on the old houses being redeveloped and exempt them from stamp duty. Also, FSI charges should be delinked from jantri