Published On: Mon, Dec 17th, 2012

CREDAI to MPs: Realty reforms must in consumer interest

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By Accommodation Times Bureau

· Hails FDI in retail as a right, bold step

· Hopes buyer-seller interests will be taken care of

· Writes open letter to law makers

· Land Acquisition and Realty Regulator Bills expected in Parliament soon

Mumbai, December 10, 2012: Highly appreciating the smooth passage of the FDI retail proposal by Parliament, realtors apex body CREDAI has appealed to MPs from all parties to consider real estate reforms to protect the interests of consumers taking into account all stake holders, including the authorities.

“Though the government is moving in the right direction with bold reforms agenda,  much more can be achieved without any controversy and incurring additional cost just by focusing on the housing sector. Now is the time for speedily taking up the issues concerning real estate sector with the target of ensuring homes for all,” CREDAI national President Mr Lalit Kumar Jain said in an open letter to Members of Parliament.

CREDAI – Confederation of Real Estate Developers’ Associations of India – has over 8,000 members through 18 member associations, pan-India. Referring to the Land Acquisition and Real Estate Regulatory Bills which are likely to be moved in the ongoing Parliament’s winter session, Mr Jain said the regulatory bill appears to be incomplete and even one-sided as it seeks to punish errant developers while ignoring the defaulting buyers and corrupt and procrastinating officials. The Land Acquisition bill may make housing costlier. He pointed out that CREDAI has been relentlessly campaigning for all-round reforms specially administrative, land, fiscal, Tax and Banking Reforms that will boost GDP growth and ensure Transparency in clearances of housing projects, thus providing homes to all.

Other measures suggested by CREDAI include a single window system of clearances to eliminate human interface that breeds corruption and make funds available to both developers and buyers at affordable and reasonable rates of interest.

Punjab has already moved ahead with the single window system and Karnataka and Andhra Pradesh are moving in that direction. The comprehensive reforms and the regulator must also include provisions to punish officials who are either corrupt or just sit on files to draw a vicarious pleasure by inordinately delaying proposals from developers. For instance, the environment departments cause green terror by not approving proposals for months and years, he said. Mr Jain also drew the attention of MPs to the ten-point action plan drawn up by CREDAI to rejuvenate the real estate sector, which he said will help the economy to grow at much faster rate since realty contributes to the growth of 200-plus other industries, including transport at every stage “Moreover, the honourable MPs are aware of the fact that real estate is highly capital and labour intensive which makes it the largest employer after agriculture,” he said. On the oft-repeated demand for reducing the housing prices, he said: “We at CREDAI have already appealed to our member developers to consider reducing the prices to the extent possible.” “No prudent businessman likes to sit on unsold stock and we too have several constraints as the cost of construction has been zooming with no signs of any control,” he said and urged MPs to look into this issue seriously.

“Everyone talks about mass and affordable housing and in fact the government has coined a slogan called Housing for All. All of us know that shelter is the most common necessity of a human being after food and water. But sadly, the powers that be have failed to address the issue apart from doing mere lip-service,” he argued.

With a vision to make India a housing surplus nation from being the housing shortage country, CREDAI has making the business environment congenial for growth. But the realty bill, in its current form and shape, stifles the honest developer and scares away new entrepreneurs from entering the sector, Mr Jain said and asked: “How can you expect the industry to grow if you discourage it at all stage of business?”

CREDAI also offered to brief groups of MPs, if they so desire, on all aspects to protect the interests of the home buyer. It is time that this business is respected in the interest of country. MPs should build required pressure on government to get respect to the business in the interest of the country and promote policies that encourage honest business and plug loopholes that lead to corruption, he said “We developers have decided to say No to corruption and we sincerely hope the MPs will support us’” he added.

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