Tag Archives: Real Estate Developers Association of India

Real Estate Bill Have to Wait More

Posted on by
Reply

The much-awaited regulatory Bill for the real estate sector is still a long way off. The draft Real Estate Regulation Bill will not be tabled during the current session of Parliament, a senior official in the Ministry of Housing and Urban Poverty Alleviation has confirmed.

The imprisonment, according to the final draft, applies only in the case of non-registration with the real estate regulation authority. Registration is mandatory for projects of a certain area and type. The maximum term of imprisonment is up to three years, and penalty may be extended up to 10 per cent of the project cost. In the earlier draft of the Bill, imprisonment was recommended in case of wilful failure to comply with orders of Appellate Tribunal too. The ministry has also reduced the area size for compulsory registration from 4,000 square feet in the earlier draft to 1,000 square feet now. This would mean registration would be mandatory for the smaller players too.

The Bill has been in the making for several years now, and was slated to be introduced during the Budget session. The housing ministry is now targeting the monsoon session of Parliament. The official said the final draft was ready. The draft bill has gone through some changes related to clauses on imprisonment and compulsory registration.

National Real Estate Development Council (Naredco) hailed this as a good move. “It would also check fly-by-night operators in real estate, which are majorly into smaller projects,” said R. R Singh, Naredco director-general. “However, the load on the authority will increase, as it would get flooded with projects for registration as smaller projects are more in number.” Confederation of Real Estate Developers Association of India (Credai), however, wants no limit on the registration. “No developer should be left out of the ambit of Real Estate Regulation Authority,” according to Credai chairman Lalit Jain.

The objective of the proposed legislation is to establish an authority to regulate, control and promote planned and healthy development and construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties, besides to host and maintain a website containing all project details.

‘Simplify Administrative Procedures, Introduce Reforms’-CREDAI

Posted on by
Reply

Simplify administrative procedures, introduce land reforms and changes in banking and taxation systems is the way to increase construction of houses, according to Mr Lalit Jain, National President of Confederation of Real Estate Developers Association of India (CREDAI). The developers have decided to make a representation to the Central Government on the issue of administrative reforms.

The governing council of the industry body will follow up on its representation, and in 45 days decide on further course of action, including going on strike, according to a press release from the confederation. The release said Mr Jain, addressing the annual governing council meeting in Pune, said the changes are needed to encourage the construction business. This will help increase the supply of houses and bring down costs. The Government and the private sector should partner to address the shortage in housing.

The real estate developers have been demanding the changes as they maintain that delays in getting project clearances, high land cost, high rates of taxation and shortage of funds in the real estate sector are driving up the cost of construction. The real estate developers’ organisation has emerged the main representative for the sector, as its membership includes more than 6,000 developers across 20 States and 100 associations in major cities in India.

Mr Pradeep Jain, National Chairman of CREDAI, said the industry body is encouraging self-regulation, by demanding its members to adopt a uniform code of conduct. The members discussed a range of issues that needed to be addressed, including the need for an affordable housing policy, undue delays in approvals, price rise, and standardising procedures across various States.

CREDAI is committed to disclosing the exact cost of a project, once the single-window clearance for approvals is set in place. Each developer will be required to mention the complete cost in each sale. In agreements with buyers, the developers must mention carpet areas in all sale material and agreements; each city unit will establish a consumer redressal forum for dispute resolution. Peer pressure and better understanding between buyer and seller helps resolve issues and save on cost and time for both parties and re-establish goodwill.

20% Reservation for EWS will take time, Says Real Estate Industry.

Posted on by
Reply

The real estate industry is at loggerheads with the state government after a directive by the Urban Development Department to private developers that they reserve 20 per cent of plots and tenements for the economically weaker sections (EWS). The move is being opposed not only by individual developers but also by the Confederation of Real Estate Developers Association of India (CREDAI) who is tagging the proposed policy as unworkable and not contemplated in totality. CREDAI has filed an objection with the Town Planning Department (TPD) arguing that Rajeev Awaas Iona gave thought to all aspects of such housing creation.

“The department is at present hearing people with stake in real-estate industry and have filed objections. The hearing report will be submitted to the government for approval,” said Avinash Patil, deputy director, TPD. The government notice, issued in January, specifies that out of development on plots measuring 2,000 square metre and above, the developers should reserve 20 per cent of the area for the EWS category in the plot size of 30 to 50 square meters. In case the developer is building apartments on the same area, it has been directed that minimum of a 20 per cent of built-up area be reserved in the apartment size of 27.88 to 45 square meters.

The real estate industry feels that implementation of such a policy should only happen after adequate thoughts as the notice can affect the industry adversely. “The notice lacks clarity. In the present form the move will hit us badly,” said Hemant Naiknavare, vice-president, CREDAI, Pune Metro.