Regulatory Overhaul in Real Estate: A Step Towards Transparency
The Indian real estate sector has reached a crucial juncture where standardization is no longer a luxury, but a necessity. Both builders and developers are increasingly open to the idea of a regulatory body overseeing the sector.
Credai's Stance on Regulation
Mr. Kumar Gera, President of Credai, emphasized that the introduction of a regulator would serve as a deterrent to unscrupulous players seeking to enter the market. Highlighting Credai's proactive approach, Mr. Gera revealed that the organization has submitted numerous representations to the government, underscoring the need for a regulatory framework.
However, Mr. Gera cautioned that the formation of such a body must not result in additional layers of bureaucracy, which could inadvertently perpetuate fraudulent activities.
Naredco's Proposal for Standardization
Mr. Rohtas Goel, President of Naredco, suggested that the government should initiate the drafting of standardized norms in collaboration with real estate bodies. This framework, once established, should be uniformly adopted across all states.
The Challenge of Meeting Promises in a Dynamic Regulatory Environment
Mr. Goel illustrated the challenges faced by developers in today's competitive market. While developers may promise various amenities to attract buyers, unforeseen changes in laws or delays in obtaining necessary permissions can hinder their ability to deliver on these promises. This, in turn, can lead to disputes with customers who may refuse to pay or demand compensation.