The decision of Housing and Urban poverty alleviation ministry (MHUPA) is looked down by the apex body of Real Estate Developers- CREDAI.
CREDAI showed higher discontent over the MHUPA’s new Real estate Bill. The officials of CREDAI said that the bill will foster corruption. The new Real estate Bill is roughly welcomed by the real estate developers.
The Confederation of Real Estate Developers’ Associations of India have nearly 8,800 developers as its members. The CREDAI members represent 20 States of India. The apex body has 114 city- divisions across the country.
The available sources reveal that the new Real estate Bill will be implemented in this winter session. The winter session of Parliament which is currently going on, is expected to approve the bill.
Speaking about the new Real estate Regulatory Bill, CREDAI’s national head Mr. Lalit Kumar Jain blamed that this bill remain insufficient to curb corruption. He added further that the bill will increase corruption.
The far-reaching powers to be conferred with the regulatory authority, can cause more corruption. The bill may become biased to political interests. As a result, the Regulatory bill may be fostering corruption at greater levels as against the expected result.
Mr. Jain continued saying that the Regulatory Bill will be ineffective in making affordable houses. As per the norms of Regulatory Bill the regulator is invested with power to reject and grant registrations. Though the bill strives to grant manual registrations, the impact will not be so as it is expected to be.
The regulator has even the power to cancel the registrations. Mr. Jain alleged that this will increase the burden of home- buyers as they will be charged the extra- amount the Real Estate Developers are forced to pay to the authority.
The national president of CREDAI suggested the addition of a chapter on real estate can support the consumers. The authority has to authorize the chapter for smoother functioning.
At the same time Mr. Lalit Kumar Jain said that the real estate developers wish to have such a regulator who assures speedy clearance. The regulator has to ensure that the launch of projects is not delayed by any reason. Planning Authority causes great trouble to the real estate developers by taking comparatively longer times for approvals.
The provisions to penalize developers under code of criminal procedure also will remain ineffective as economic crimes do not summon any criminal procedure.
Regulatory Bill demands the Real Estate Developers to deposit 70% of the total sale value. If the developers are to deposit such a large portion of amount then the builders will remain incapable of any business expansion. This will destroy the real estate sector as well.
Moreover the apex body of Real Estate Developers fears that the investors also may withdraw them from investing in the real estate. This will discourage new entrepreneurs from entering Real Estate sector.