Developer suicide puts spotlight on Mumbai-Thane realty mess

“Policy paralysis” and political interference are rampant in this metropolitan region for property developers, says the trade in the aftermath of Wednesday’s suicide by the president of the Thane unit of the Maharashtra Chamber of Housing Industry.

Suraj Parmar, who killed himself on Wednesday, was promoter of Cosmos, a Thane-based realty group. In a 15-page suicide note, he has cited being subject to a series of approval delays for his projects and a stuck decision making system for the step he would take.

While Mumbai is home to India’s costliest real estate, Thane is the fastest growing housing market in the country.

“Parmar used to fight politicians and officers over corruption. Most of us settle the matter and close it (but) those kind of margins are no more left in real estate to pay politicians and officers,” said the managing director of a Mumbaibased developer. He declined to be identified.

Builders, he said are caught between stagnant sales on the one hand, and corruption and delay in approvals on the other.

The housing market in the Mumbai Metropolitan Region has recorded its worst halfyearly performance since the financial crisis of 2008, with sales weakening even as 200,000 units remain unsold, according to property consultant Knight Frank. New housing project launches fell by 47 per cent in the first half of this year.