Real estate is the single largest individual investment in India. It also provides the largest employment at the same time it is also attracts the largest amounts of black money in our country. It is also most desirable sector for the country like us where a large portion of population still lacks roof to live at. But unfortunately due to logjam of Parliament this bill is pending in Rajaya Sabha.
On the other hand purchaser of flats more often cheated & exploited by the builders & promoters due to lack of strong laws. It is so common that any person can check it just to have a conversion from an individual who are moving from pillar to post to get justice . Each individual have a desire to have a small flat. HE OR SHE invest the entire savings in the real estate to full fill their dream . But unfortunately when they face reality then they simply weep. Occasionally deviant promoters are called to account as was the case with Unitech’s promoters.
This incident shows out the fallout of an absence of proper regulation to protect investors. The real state bill, pending in Rajya Sabha, seeks to fulfill this gape. Opposition should read the woes of the investors and allow to get the bill passed in the Budget session of parliament. We are in the midst of rapid urbanization. It is expected that in next 30 years our urban population will be just doubled & will reach to 900 millions. unfortunately present urban population even does not have adequate roofs. According to rough estimate 40 to 60percent population in metros does not fave their roof . The condition is alarming where a large section lives under the sky. China in contrast provides roof to about 98% of its population. A government estimate in 2012 put the shortage at nearly 19 millions unit. If this shortage is to be alleviated quickly, India real estate sector needs immediate reforms. Real estate bill seeks to protect the buyers which is negligible so far .
Transparency is a rare commodity in real estate . This bill will enforce promoters to upload project details on the regulator’s website . Importantly buyers will not be cheated so conveniently. The real state bill provide title insurance of land on which tower will be built up . This bill have several clause which safe guard to the buyers. This bill has been scrutinized by two parliamentary committee. As such delay in passing has got no justification.
Multiplicity approving agencies is the another hurdle in real estate like other industry in our country. In fact license raj has been abolished on paper on long past . But multiplicity of agencies is not less painful . Just we can see the tax structure where CST, State tax, vat, IT, Excise, custom & more agency are there. These multiplicity also cause corruption & non transparency . Let us hope that all political parties will insure to get the estate bill passed in Budget session of Parliament & will get the blessing of deprived people
Dr Dinesh Mishra
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