CREDAI Advocates for Consumer-Focused Real Estate Reforms
Consumer-friendly real estate reforms are increasingly vital to achieve the objective of providing "Home for All." CREDAI, the leading confederation of real estate builders, has made this assertion and emphasized the pressing need for such measures. The organization has appealed to members of Parliament (MPs) to introduce reforms that prioritize consumer interests and address the significant issue of stalled projects across the country.
CREDAI Chief Emphasizes Need for Balanced Reforms
Lalit Kumar Jain, National Chief of CREDAI, has commended bolder government reforms of the real estate industry while emphasizing the potential for further progress. Jain urges Parliament to prioritize the residential sector and address critical issues, thereby advancing the "Home for All" initiative. In an open letter to MPs, Jain highlighted the Real Estate Regulatory Bill and Land Acquisition policies, expected to be addressed in the current winter session.
Concerns Over "One-Sided" Regulatory Bill
Jain criticized the proposed regulatory bill as "one-sided," arguing that its focus on penalizing errant developers while neglecting defaulting buyers and corrupt officials is unbalanced. He expressed concern over the land acquisition bill raising housing costs. He pointed out the bill, in its current form, focuses solely on penalizing developers while ignoring the role of defaulting homebuyers and the impact of corrupt officials in creating these issues.
Call for Comprehensive Reforms
CREDAI has consistently advocated for comprehensive reforms across land, fiscal, and administrative sectors alongside changes in the Tax and Banking sectors. Mr. Jain believes these reforms are fundamental for enhancing transparency in project approvals and stimulating GDP growth.
Single Window System for Faster Clearances
CREDAI proposes a single-window system to expedite project approvals, reduce corruption, and potentially lower housing prices. States like Andhra Pradesh, Punjab, and Karnataka have shown interest in this approach. The organization believes this system will streamline the process and reduce opportunities for corruption, ultimately benefiting homebuyers through potentially reduced prices.
Addressing Corruption in Project Approvals
CREDAI has made it a point to demand the inclusion of provisions to penalize corrupt officials in the regulatory bill. Jain highlighted the issue in the environment department, alleging that some projects face unnecessary delays due to drawn-out approval processes, a phenomenon sometimes called "green terror."
Real Estate's Economic Impact and the "Home for All" Goal
In his letter, Jain underscored real estate's role as a major employment generator, supporting over 200 related industries. He argued that the current regulatory bill discourages new entrants to the sector, which is at adds with the government's "Home for All" objective. While CREDAI has encouraged its members to minimize prices, rising building costs present substantial challenges.
Protecting Homebuyer Interests
Jain's letter concluded with a comprehensive overview of the situation and outlined proposals designed to protect homebuyer interests, expressing hope that MPs would address loopholes in the pending regulatory bill. He reiterated CREDAI's commitment to promoting transparency and fairness in the real estate sector while ensuring its vitality as a driver of economic growth. The president affirmed that CREDAI remains dedicated to ensuring the interests of the homebuyers and expects the Parliament to respond to their concerns.