Indian
real estate sector has always been known for its infamous deeds primarily
because of the unorganised process that it follows which is still persisting.
But at the same time, it is able to contribute gigantically towards India’s
Gross Domestic Product (GDP) and employment opportunities. With the absence of
a regulatory body, single window clearance system and industry status; still this
sector has been consistent in serving the dynamic needs of the domestic as well
as international traffic. But during this process, filtration of what is wrong
and what is right is not possible due to which there are still a lot of
questions that remain answered.
Parmar case: To learn or let go
In a recent shock to the entire nation, Late Mr.
SurajParmarwas forced to end his life as he could not further bear the brunt of
the corruption existing in the sector. Due to this incident, leading private
body of the sector; CREDAI remained shut on 13th October, 2015.
Looking at the flipside, there have been numerous cases, where not only an
individual but entire families have lost hope and committed suicide because of
not getting their homes on time and fed up of paying rent and EMIs together. Who
will address their issues?? “There is no denying that real estate sector has
still not been able to earn trust of the public. This trust can be attained
once there is proper registration process, monitoring of transactions and
continuous supervision of the dealings. But the SurajParmar case has come out
as an eye opener for everyone associated to this sector. The government should
now focus upon making sure that single window clearance system and a regulator
at the centre should become operational, so as to suffice everyone’s needs and
curb the evils pertaining in this sector”, explains Mr. Rakesh Yadav, MD,
Antriksh Group. Adding to this fact, Mr. Vivek Gupta, Director, Vardhman Estate
& Developers (P) Ltd. states “At present, providing the real estate sector
with an industry status is need of the hour so as to allow ease of doing
business. Everyone must understand the fact that this sector is an end user of
products created by over 300 industries in the country. Thus, simplifying the
work process here will lead to an overall harmony for both, developers and
customers. At the same time, timely approvals can become possible only with
single window clearance system which will ultimately allow developers to offer
possession on time and reduce unnecessary pressure over the customers”.
Real estate bill in winter session
brings hope
Another disturbing feature of Indian real estate
sector has been delays in delivery, not providing customers with refund for
cancellations and changes in project specifications without prior notice to the
customers. In this sector, the buyer agreements are tend to be one-sided with a
bias towards the builder. Although, with the real estate bill hopeful to be
tabled this winter session, if passed, it will greatly assist in bringing
justice to the buyers and promote fair dealings in the future. “This bill will
ensure that the transactions incurring in this line of business between buyers
and developers are fair and transparent. Also, this bill will make sure that
every state sets up a regulatory authority. With this authority, the developers
will have to compulsorily upload all project related documents such as site
plan, layout plan etc. on the authority’s website. Prior to selling the units,
every builder will first have to register the project with RERA; and even the
brokers will have to register themselves, thus enhancing the transparency in
the sector”, enlightens Mr. VikasBhasin, MD, SayaGroup. Also agrees Mr. Amit
Chaudhary, MD of Rhythm Ccounty, as he says “Apart from getting themselves
registered with RERA, if developers plan a structural change, it won’t be
possible until the developer has attained the consent of two-third of the
buyers. This will promote discipline in the sector and remaining fixed to the initial
designs. Another prominent feature of this bill is the clause of maintaining 50
percent of the funds in an escrow account so as to curb developers to divert
funds to other projects. Hence, this bill will not only confirm transparency but
discipline as well which suits the public”.
If real estate bill gets a go ahead this winter session, this sector
which has lost its lustre will start coming back on track, and gradually gain
trust and credibility.
What lies ahead
There is pressure on the customers as well as the
developers. One is under pressure to deliver quality projects on time and other
is under monetary pressure and facing the delays in delivery. Developers have a
justification of not delivering on time and the customers are trapped equally.
There is now need of an immediate government attention towards this sector if
the dreams for Housing for all, smart cities and AMRUT have to become true.
“Without real estate bill and single window clearance system in place, how can
we provide 2 crore homes within 7 years? Further, even if this feat is achieved
on time, who is there to answer the grievances of people of those segments who
will own a home for the very first time in life? These questions and problems
will remain unsolved till the time government does not take up these matters
seriously and execute the real estate bill and single window clearance system
across the country”, avers Mr. Sudeep Agrawal, MD, Shri Group.
Thus, Indian real estate sector has always faced
trouble but is not much behind in creating trouble for the people as well.
Every coin has two sides and thus, people of this sector must not ignore the
fact that real estate in our country has always been in news due to some
negativities but at the same time; even we need to excuse these negativities
pertaining to this sector, as not all is in the hands of the developers
fraternity and the government must intervene in these matters more seriously.
“We cannot take credit away from the real estate sector for how it has
transformed this country and is still doing so. Because of this sector several
other industries are dependent. This sector is a massive contributor to
employment and the economy in general, but again the multiplier effect that
this sector produces for other industries can’t be measured. Why it is still
ignored then? Recently we had CREDAI protesting on behalf of over 11,500
developers, but why do we need reasons to raise our voice? Isn’t our work
already visible to the nation? We hope that the government now takes up certain
disturbing matters seriously and allows this sector to grow peacefully”,
questions and concludes Mr. Ankit Aggarwal, CMD, Devika Group.
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