Stick to what’s promised in advertisements and deliver projects on time, Venkaiah Naidu advises builders | real-estate | Hindustan Times
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Stick to what’s promised in advertisements and deliver projects on time, Venkaiah Naidu advises builders

Builders must change their outlook and come out with new business principles and models. They must also adopt digital transactions for greater transparency

real estate Updated: Mar 22, 2017 18:06 IST
Builders must change their outlook and come out with new business principles and models. They must also adopt digital transactions for greater transparency, union minister M Venkaiah Naidu told builders at the Credai Conclave.
Builders must change their outlook and come out with new business principles and models. They must also adopt digital transactions for greater transparency, union minister M Venkaiah Naidu told builders at the Credai Conclave.

The real estate sector has acquired a degree of taint and is undergoing a serious crisis of character. While both RERA (Real Estate Regulatory Authority) and the Benami Transaction (Prevention) Act are aimed at restoring the character of the sector and bring back confidence of homebuyers, developers too must fulfill their promises to buyers and deliver projects on time, Union minister M Venkaiah Naidu told builders at the Credai Conclave today.

Housing and urban poverty alleviation minister Naidu was responding to the developers’ demand that ongoing projects be exempted from RERA. Credai chairman Irfan Razack had demanded that provisions of the new Act should not be applicable with retrospective effect and should cover only new launches.

Confederation of Real Estate Developers Association of India (CREDAI) is the apex body of developers and builders in India and has over 11,000 members.

“The government is not asking you to do anything more than what you have promised to the people. What you have promised on the paper, simply complete that, we will stand by you,” Naidu said. “Simply adhere to the advertisement,” was his advice.

“Issues that have been raised are being considered by the ministry. With regard to ongoing projects also...I wish I could transfer all my emails to Mr Irfan and let there be some committee address those issues...Address those issues, take corrective actions and then I can tell them prospective and not retrospective,” he said.

RERA hopes to restore the character of the sector and will be a game changer. It will help eliminate fly-by-night developers altogether. Other initiatives taken by the government include granting infrastructure status to affordable housing and other tax sops. “We have also written to all chief ministers to rationalise stamp duties and also asking them to waive it off for affordable housing,” the minister added.

To transform the real estate sector, developers need to change their outlook and come out with new business principles and models. Naidu said builders should adopt digital transactions for bringing in transparency in the sector. “I require an assurance from the sector that all transactions will henceforth be digital. Digital transformation will lead to correction in the sector,” he said.

The minister also expressed concern over the skyrocketing land prices and said had to be “brought down to the land” to make them affordable for the public.

About the ease of doing business, Naidu assured the developer community that the government was in the process of making faster approval of real estate projects and a presentation on this by the ministries concerned would be made before the prime minister soon.

“Credai will be formally compliant with RERA and work to make the Act a success. Credai has signed an agreement with Corelogic, a leading provider of consumer, financial and property information, for a software that will make online compliance easier,” said Getamber Anand, president, Credai.