Developers Propose Self Regulatory Body for Indian Realty

July 12, 2007	(1 votes, average: 5 out of 5)  Loading ...
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The National Real Estate Development Council (NAREDCO) has proposed setting up a self regulatory real estate authority to avoid interference of government.  There are plans being drawn for its formation.

The authority is believed to function at four levels – centre, state, district, and town, informs R.R Singh, Director General of the council. It will also seek the corporation from the stakeholders who will help in its representation.

There will be ministries of urban development and housing, real estate companies, urban poverty alleviation, and Delhi Development Authority along with other land managing bodies.

Few days back, the government was planning to bring a watchdog for real estate industry which will make developers accountable to buyers. Proposal for the authority has come following in the same footsteps.

There is a dire need for such a self regulatory authority and not the government controlled regulatory bodies in Indian property market, adds Singh.

As an autonomous body, its main responsibility will be setting the guidelines for real estate developers and also prescribe disciplinary action.

The Centre has recommended formation of a central real estate regulatory body exclusively for National Capital Region. The authority will then provide guidelines for state, district, and urban authorities looking after the management of real estate.

Everyone is well aware of the fragmented nature of Indian real estate. If there are renowned and proficient builders then there are fly by night operators as well. There is a need for greater transparency in the sector to prevent mal-practices like construction of unauthorized buildings.

An independent regulator with clearly set guidelines and directives to follow ensure fair competition and protection of interest of builders, investors and consumer on the top.

However, different people have different opinions regarding formation of a separate authority to look into the issues and matters of real estate sector.  The self regulation authority may not be effective in bringing the required transparency in the market, says Ramachandran, secretary, ministry of urban development.

Considering the increasing prevalence of wrong practices in the sector, it has become necessary to come up with a regulatory authority. Recently, property agents across India have come together to form a national association, the National Association of realtors India, to self regulate fragmented sector of realty.

If the plans for formation of a regulatory authority fall in green box, all builders have to follow the rules and regulations like developing earthquake resistant and environment friendly buildings.

News Published Under:   Real Estate India |

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