CREDAI Presents Action Plan to Combat Corruption in Real Estate
CREDAI presented an action plan to Union Urban Development Minister Kamalnath during the two-day 11th National Conference (NATCON) held in Singapore. The organization aims to tackle corruption within the real estate sector and improve its public image. CREDAI National President Lalitkumar Jain addressed the issue of the real estate community’s negative perception. "The developer community is being marked as being pollute," Jain stated, emphasizing the association's intention to meet with the Prime Minister to discuss solutions for combating corruption and move beyond simply assigning blame.
Addressing Corruption Concerns
Jain expressed the widespread concern over India's reputation for corruption. "Our country is, sadly though, rated to be one of the most corrupt nations of the world. Any citizen of the country will feel hurt and disgraced. The real estate sector is rated to be the biggest contributor to this dishonor. I and all my colleagues in real estate feel seriously insulted.” He argued that developers are victims, not beneficiaries, of the current corrupt system, further emphasizing that the real estate sector has been unfairly labeled as a breeding ground for black money and illicit activities. “It is the various government methods, procedures and delays in clearances that give birth to corruption. We curse every person who exploits us to give us a lawful permission which we deserve immediately and without any dishonest demand,” he stated. He elaborated that developers’ significant investments coupled with extensive delays force many to consider illegal methods to accelerate approvals in order to reduce costs. “After investing madly in land, even a day’s delay in approvals adds to the costs and in extreme anxiety and when speed becomes important, the concept of speed money crawls in,” he said. Jain highlighted that obtaining necessary certificates and clearances adds a huge burden on developers. “Every developer has to get 40 certificates, No Objection Certificates and clearances,” He stated.
CREDAI's Recommendations
Referencing the 2001 McKinney Report, Jain pointed out the substantial impact of approval-related issues which adds 40% to the cost of housing. To address these challenges, CREDAI submitted two important documents to Minister Kamalnath. These included a compilation of best practices from various state governments and a comprehensive checklist for approvals, providing a potential path toward a more transparent and efficient system. These resources aim to promote streamlined processes, reduced delays, and ultimately, a curb on corruption within the sector.