(Bangalore property|apartments|flats|lands for sale in Bangalore)
According to the
Confederation of Real Estate Developer’s Associations of India (CREDAI), the
proposed real estate regulatory bill would only increase corruption.CREDAI
represents 8,800 Developers through 20 States and 114 City chapters across the
Country.The bill is expected to come up in the current session of Parliament.
According to the
National President of CREDAI, the sweeping powers sought to be vested with the
Regulatory Authority would only increase corruption manifold, instead of
curbing it.This may serve political interests of the powers that be, but does
not solve the Home Buyer’s issue of making housing affordable.
For instance, if the Authority
seeks to grant registrations manually and even empowers the regulator to reject
them.It also gives discriminatory powers to the Authority to cancel
registrations.This is dangerous and will lead to greasing the palms and all
such cost is bound to be passed onto the End-Buyer.
The best way is to
strengthen the Consumer Redressal Forum by adding a chapter on real estate and
empowering it.CREDAI wants a true regulator, which will govern all the
stakeholders and have powers to ensure that no delays occur due to other
stakeholders like the Planning Authority.There are provisions to penalise
Developers under CrPc (code of criminal procedure), though economic offences do
not invite such draconian Legal Action.
The bill also provides
for depositing 70 percent of the sale price in a Bank account by Developers.
Blocking such a large amount will hamper their liquidity and business expansion.The real estate and construction industry is the Country’s largest Employer after
agriculture. The regulatory provisions will create a fear of psychosis and also
discourage Entrepreneurs from entering the business.
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