LETTERS TO EDITOR

Reforms in realty sector

This has reference to ‘Resolution in realty’ (March 19). The decision to permit resolution plans projectwise is welcome and it should be further segregated tower or groupwise in big projects so that resolution plans can be drawn covering the project to the maximum extent possible. There should be provisions for takeover and completion of projects by apartment buyers and it should be mandatory for builders to maintain accounts projectwise so that the rehabilitation can be easier. Many realestate projects languish as the promoters are not able to pump in funds progressively. The very first delay in delivery of apartments is a warning signal. In such cases RERA

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should step in and take immediate remedial steps so that the cascading effects of such delays are minimal.

Mumbai

Devolution of taxes

This refers to ‘Misconceptions in fiscal federalism’ (March 19). Hopefully, this article will set at rest the controversy about the Central Government arbitrarily favouring States ruled by it, and quell the apprehension that the government is not acting on sound economic and federal principles based on equity. Perhaps, the 16th Finance Commission can give greater weightage to fiscal and economic performance of States by taking into

account the actual contribution of taxes via indirect tax collection through GST, which can serve as a proxy for States’ share or contribution in total taxes accrued to the Union.

Chennai

Landmark verdict

Indeed, the apex court’s decision in a realty sector case to include the allottees of homes in the Committee of Creditors in the IBC proceedings is a landmark verdict that will help the allottees get back their investment if the realtor defaults. Also, insisting on opening a separate account and a separate plan for each project will not only benefit the allottees but also

eliminate confusion during the resolution process.

Sivakasi, TN

Stable domestic capital

This is with reference to ‘Startups must prioritise corporate governance’ (March 19). Good corporate governance practices should be part of the overall corporate culture. Integrity and good governance are vital for the growth of startups. Domestic investments in startups is on the rise. India is mulling ways to allow pension and insurance funds also to flow to startups.

Virudhunagar, TN

Sustainable tourism

The article ‘Tourism sector will need to go green for growth’ (March 19) made for a good read. Foreign tourists are an important component of invisible exports. The figures regarding the employment potential of the tourism sector and, of course, its generation of considerable foreign exchange earnings are pointers to that.

That said, any country which puts ‘clean environment’ on the backburner is unlikely to maximise growth or welfare.

Put differently, increase in GDP is both the cause and consequence of welfare.