Antiquated laws reason for corruption in real estate: DLF

India’s biggest real estate company DLF blaming use of black money in real estate to antiquated laws, Prime Minister Manmohan Singh’s emphasis on reduction of stamp duty will help in cleansing the sector.

“After Independence so far there is no update in Real Estate’s laws and regulations, everything is archaic” DLF chairman K P Singh said at a media conclave.

He added, that although changes are being undertaken, it is “not happening at the pace that I would like to see”. Yesterday, Prime Minister Manmohan Singh had said stamp duty needs to be reduced in order to check flow of black money into the real estate sector.

NEW DELHI: Terming stamp duties as a “big obstacle” in ensuring transparent transactions in real estate, Prime Minister Manmohan Singh today batted for reducing such levies to check the flow of black money in the sector.

“I think as far as black money in real estate is concerned, unfortunately that is a reality and one way out of this would be to lower the stamp duties,” Singh said in media Conclave

The Prime Minister’s statement was welcomed by private players in the sector, saying it would help cleanse illegal funding.

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2 thoughts on “Antiquated laws reason for corruption in real estate: DLF

  1. The statement of the DLF chairman, Mr. K P Singh that every regulation and law in real estate is archaic only emphasizes that economic reforms have bypassed this sector. In fact with Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in place since 2005 the mandatory reform of Rent Control Law (RCL) should have been achieved by now all over the country. However a social audit by Public Interest Litigation Watch Group shows that not a single state has undertaken the reform till date. The beneficiary of JNNURM funds viz 31 States and UTs fall into three categories. Category A includes Arunachal Pradesh, Manipur, Mizoram, Nagaland and Orissa where no RCL existed even prior to launch of JNNURM. Category B includes West Bengal, Rajasthan and Karnataka where RCL reform has taken place before JNNURM was launched. Category C includes rest of the 23 States and UTs. Of these, 20 have not undertaken the reform while Delhi, Chandigarh and Maharashtra have not even committed to undertake RCL reform. The Union Government – which has the legislative competence to undertake RCL reform in Delhi and Chandigarh – has not done so till date. Political expediency overrides legitimate policy.

  2. If land is a state subject and income source of corruption for politician and bureaucrats even then UT’s laws could be made example to lead states. I hope if one state reformed others may be compelled to follow.

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