Real Estate Bill Clears Govt Of Blame, Worries Some Builders
Aug 11, 2015
Source : TOI

 

Panaji: The Real Estate (Regulation and Development) Bill, 2013, which is still pending in Parliament, has the Goan real estate industry worried. While stakeholders agree that the bill, once passed, will bring clarity and confidence into the real estate market, developers are wary about the lack of onus placed on the government, which they feel, is an important stakeholder in the real estate economy.

In a bid to eradicate fraudulent practices and safeguard home owners, the central government's draft bill proposes to create a regulatory body and a redressal mechanism. To protect buyers' interests, the regulator will be empowered to impose stiff penalties on builders if they fail to transfer possession of an apartment or building as per the declared time.

The bill states that the end-user is entitled to claim possession as per the declaration given by the builder and if the builder fails to complete or is unable to give possession, he is liable to return the amount paid by the consumer and is also liable to compensate the consumer. In all this, the government finds no mention.

"The government has the right intention but in order to regulate the industry you have to bring all three stakeholders on board and the government is an equal stakeholder here," a Panaji-based real estate developer said.

CREDAI India, in a letter addressed to the Rajya Sabha secretariat, states, "The bill does not take into account other stakeholders like 'competent authority' or functional agencies who are not answerable to the regulatory authority which results in delays in projects and it is only the promoter who is made solely responsible."

The draft bill clearly states that it is responsibility of the promoter to provide essential services such as water supply, electricity, light in passages and staircases, lifts and sanitary services by the date of possession and that withholding of such services would amount to non-compliance.

"It should be explicitly provided that the project promoters are not liable for delays for want of approvals from statutory bodies," President CREDAI India, Getamber Anand, says.

"It is the government that gives electricity and water connections. If they delay, why should the developer pay for it?" a city-based architect asks, adding, "Very often delays in utility connections are a way to extort a bribe."

Talk to most developers and they will agree that palms have to be greased right from the panchayat to the minister-level if clearances are to be given on time. Failure to do so could lead to the electricity department claiming that electricity metres are out of stock or that it would take time for water connections to be completed.

Instead, the industry has suggested that it should be the responsibility of the government to provide water, electricity, drainage, sewerage connections.

"Even after paying infrastructure tax, we have to build access roads and put streetlights," a South Goa-based developer says, adding that all this finds no mention in the proposed bill.

The first move by the Goa government to regulate the industry through a bill was in 1993 and the latest attempt was made in 2010, but neither of them saw the light of day. If one goes by the bills proposed, even in Goa, there is no onus imposed on the government machinery to deliver essential services as per stipulated time or for deemed approval to be given once the time lapses.

The Goa Real Estate (Promotion Control and Development) Bill spoke about imposing penalties as high as 10 lakh on developers which on an average could easily amount to 10-20% of the value of the apartment.

Not all builders are concerned. Developers, especially those who are well-established and who promote mega projects, claim that the bill, even in its present form, is essential to weed out fly-by-night builders who often cut corners. "The bill is a must and I don't think the clauses about utility connections should worry people. Once the rules are in place it will be better for the market," another Panaji-based developer says.

"In the industry, we are all for regulation and this will help weed out the small operators," a spokesperson for one of Goa's leading construction houses said. "Ultimately it is the consumer who has to be worried because this is just another bottleneck that will drive costs up and this will be passed on to the consumer."

 

Latest Realty News

Aravali-master-plan-stuck-in-freezer
Aug 10, 2015
GURGAON: The Haryana government's ambitious plan to conserve the Aravalis by drawing up a master plan for the region, which was initiated by the state's forest minister Captain Abhimanyu, may have been put in cold storage
Real-Estate-Bill:-Growth-of-the-sector-can’t-be-at-the-cost-of-consumers
Aug 08, 2015
The report of the Parliamentary Select committee on the Real Estate (Regulation and Development) Bill, 2013, tabled on the floor of the Rajya Sabha has not only rectified the many dilutions that were made to the original Bill, it has also built in additional safeguards to regulate all kinds of transactions between home-buyers and builder
Building-of-service-apartments-in-hotels-will-be-allowed-in-Delhi
Aug 07, 2015
NEW DELHI: Urban Development Ministry has approved a proposal to allow building of service apartments in hotels in national capital as a part of review of Master Plan of Delhi-2021.
End-users,-investors-keep-Pune-housing-market-alive-in-Q1
Aug 07, 2015
The demand from both end user and investors precisely in the mid-range segment kept the overall Pune residential market positive during the quarter ended June, showed a report by property consultancy Colliers International.
CREDAI-Odisha-conducted-a-blood-donation-camp-at-Bhubaneswar
Aug 07, 2015
Bhubaneswar: The CSR Committee of CREDAI-Odisha along with Indian Red Cross Society- Odisha State Chapter, has conducted a blood donation camp at its association office on 5th August 2015.
3-Ghansoli-land-plots-in-Navi-Mumbai-fetch-Rs-221-crore
Aug 07, 2015
NAVI MUMBAI: Three land tender plots of Cidco in prime locality of Ghansoli, sector 8, were on Thursday sold to the highest bidders for rates as high as Rs 1.61 lakh per sq metre, fetching the state agency a total revenue of Rs 221 crore through these sales.
FICCI-experts-to-assist-Nagpur-Municipal-Corporationin-for-Smart-City
Aug 07, 2015
NAGPUR: The cash-strapped Nagpur Municipal Corporation moved one step ahead as far as its dream of getting central funds under Smart City project is concerned.
US-based-SRS-Investments-enters-Vizag-realty-market
Aug 06, 2015
VISAKHAPATNAM: Terra Alpha, the real estate arm of US-based private-equity real estate investment firm SRS Investments, on Wednesday launched the Port City's first realty FDI (foreign direct investment) project Celest that comprises a residential-cum-c
House-map-approval-begins-in-Patna
Aug 06, 2015
Patna: The Urban development and housing department (UDHD) on Wednesday cleared the decks for house map approval in the state capital and its adjoining areas.
Builders-struggle-to-sell-houses-in-Surat
Aug 06, 2015
SURAT: There is a supply overhang of houses in the Diamond City with around three lakh flats lying vacant for a couple of years now.

Latest Realty News Of State

Realty Talk's