MHUPA- Housing and Urban poverty alleviation ministry- decided to launch New Real Estate Bill. This decision was welcomed by the home buyers but not CREDAI. The new Real estate Bill is believed to be implemented in the current winter session of the parliament.
CREDAI Showed its displeasure over the new Real estate Bill which is to be launched by the MHUPA. The apex body of real estate developers alleged that the bill will give way to greater corruption. Thus they coarsely welcomed MHUPA’s New Real estate Bill is.
Mr. Lalit Kumar Jain – national president of CREDAI- pitied that the bill will increase corruption and not going to reduce it. As the bill empowers the regulatory authority to reject and grant registrations of real estate projects there are more chances for corruption to go higher.
Another notable feature is that there will be provision for the construction of affordable homes. As per the bill the real estate developers are to set aloof nearly 35 % of total construction for the affordable homes. Mr. Jain suspects the idea as it will be impossible.
When the regulator is empowered even to cancel the registrations, there is more chance for the real estate developers to bribe the regulator. The aftereffect will be upon the shoulders of the prospective home buyers who will have to pay the extra amount paid as bribe.
Mr. Jain opined to have a chapter on real estate instead to help the consumers. The authority can be sure of the smoother functioning of the chapter.
Meanwhile Mr. Jain said that the developers expect to have a regulator who will pace up the real estate clearances. He added that the regulator should see that the project is launched on time.
At the same time he blamed the Planning Authority which takes longer times for approvals comparatively. This is pointed as one of the main reasons of delay in delivering real estate projects.
The special provision to bring real estate developers under criminal charges also will not work out as economic crimes do not fall under criminal charges. Real estate developers also did not welcome the Regulatory Bill’s demand of depositing nearly two third of the total sale amount.
As per the bill, Real Estate Developers will have to deposit 70% of the total sale value in the banks. They alleged such huge amount of deposit will curb their business growth and no more embellishment will become possible. Moreover this will act as a block to the new real estate developers to step in to the field.