Builders in the city are opposing the housing regulatory bill that was recently cleared by the central government on the grounds that it is loaded heavily against them.
They believe that the Real Estate (Regulation and Development) bill has the potential to encourage corruption and harass them.
According to the Confederation of Real Estate Developers of India (CREDAI), the discretionary powers of registration and deregistration of projects will lie in the hands of bureaucrats which is far from ideal.
“It would encourage corruption and only those with political influence could survive,” said Lalit Kumar Jain, Chairman, CREDAI.
The bill is aimed at regulating the real estate industry and safeguarding the interests of homebuyers. Clauses like compulsory registration of the builder along with mandatory disclosures of documents form the foundation of the bill. It also includes penal clauses for builders who violate its statutes.
Paras Gundecha of the Gundecha Group lamented that accountability only lies with the builders. “There should be responsibility fixed on all stakeholders like builders, consumers as well as government officials,” said Gundecha.
“What can we do if we don't get permissions and consumer's claim compensation for late delivery?” he asked.
However both flat buyers and activists are happy with the bill. “Consumers have been taken for a ride by the builders for years now, this bill will certainly help,” said Ramesh Prabhu, Chairman, Maharashtra Societies Welfare Association (MSWA), an NGO which takes up issues of flat owners.
Sanjay Dutt from Cushman and Wakefield, an international real estate consultancy firm, said that the bill could attract investments from international funds that have haboured skepticism towards real estate community.