Property Plus
Bangalore
Chennai
Coimbatore
Hyderabad
Kochi
Thiruvananthapuram
Real-estate regulatory body soon
|
Mixed response to Centre’s proposal to float the authority to help consumers as well as builders
|
— Photo: H. Vibhu
Protecting investors: Several builders feel that a real estate regulatory body would go a long way in bringing transparency to the system.
If you want to buy an insurance policy worth Rs. 5,000, then you have to purchase the policy from an insurance agent recognised by Insurance Regulatory Development Authority. If you want to invest your hard earned money in fixed-deposits, then invariably one has to follow guidelines of RBI.
If one wants to invest in shares then there are Sebi guidelines for regulation. However, when a person is on the verge of making the most significant investment in his or her life i.e. buying a house, there is no regulatory body.
A paradoxical situation indeed, which has led to lack of professionalism and has brought builders and brokers of all kinds, who are not aware of basic rules and facts of civil engineering, into the real estate sector. According to Union Minister for Urban Development S. Jaipal Reddy by next year a real estate regulatory body would be in place to protect interests of consumers.
However, consumer rights experts have reservations over the proposed regulatory body.
“Will the regulatory body be allowed to run by people who do not have vested interests? Will the huge lobby of builders and brokers allow the regulatory body to come in the first place?” asks noted consumer activist N. Ganesan of Consumer Care Centre. However, several builders feel that the regulatory body would go a long way in bringing transparency. “It’s like providing guarantee to the consumer. We also came to know that some kind of control would be exercised over pre-launch offers to stop builders from taking consumers for a ride before taking project clearances,” maintains president for Builder Forum for Andhra Pradesh., C. Shekhar Reddy.
Certain sections in the builder’s community also point out that the regulatory body can help builders. “What will the builder do when the customer pulls out or pays for the project irregularly? The honest builder suffers and is not able to complete his project on time. So, in addition to the consumer, the regulatory body would also help builders involved in some high quality projects,” points out builder of Manjeera Diamond Towers, Mr. Yoganand.
M. SAI GOPAL, HYDERABAD
Printer friendly
page
Send this article to Friends by
E-Mail
Property Plus
Bangalore
Chennai
Coimbatore
Hyderabad
Kochi
Thiruvananthapuram
|
