Track2Realty: Dismissing the proposed RERA (Real Estate Regulatory Act) as anti-people, developers’ apex body said the sweeping powers sought to be vested with the Regulatory authority will only increase corruption by manifold, instead of checking the social malady.
“We whole heartedly welcome the Union Government’s noble intention to assist consumers in real estate industry, but the realty regulator bill in its present shape and form does not solve the problem and rather proves to be inflationary and breeding ground for corruption,” CREDAI National President Lalit Kumar Jain said in a media statement.
This may serve political interests of the powers that be, but does not solve the home buyers’ issue of making housing affordable, he said.
For instance, he said, RERA seeks to grant registrations manually and even empowers the regulator to reject them. It also gives discriminatory powers to the authority to cancel registrations. “This is dangerous and will lead to greasing the palms and all such cost is bound to be passed onto the end buyer,” Jain explained.
This is reminiscent of the British Raj, he said.
Pointing out that the real estate and construction industry is the country’s largest employer after agriculture, he expressed the apprehension that the regulatory provisions will create a fear psychosis, thus discouraging the younger generation of entrepreneurs from entering the business.
In fact, the best way is to strengthen the consumer redresser forum by adding a chapter on real estate and empowering it. “CREDAI wants a true regulator which will govern the all the stake holders and can have powers to ensure that no delays occur due to other stake holders like planning authorities,” he said.
Business sentiments will also be hurt due to the provisions to penalize developers under CrPC though economic offences do not invite such draconian legal action, he said.
“This is also against the economic interests of the nation,” he argued.
RERA also provides for depositing 70% of the sale price in a bank account. Blocking such a large amount will also kill liquidity and business expansion.
CREDAI governing council will meet shortly to plan its next course of action on RERA, Jain added.
