Realty regulatory bill should cover all stakeholders: CREDAI
New Delhi: The bill to regulate real estate sector should cover the authorities responsible for giving approvals for projects, besides developers community, realtors' body CREDAI said Thursday.
Stating that the real estate regulatory bill approved by the Union Cabinet seeks to whip only errant developers, CREDAI Chairman Lalit Kumar Jain expressed fear that it could encourage corruption instead of curtailing the social menace.
"The real estate sector definitely needs a regulator on the lines of the one controlling telecom, banking, stock markets and insurance sectors," he added.
However, he said the discretionary powers for registering or deregistering projects and adjudication by a bureaucrat could become breeding grounds for corruption.
"Our fear is that those with expertise to handle political influencers will only survive, thus leaving the all important industry in the hands of corrupt people," Jain said.
He demanded that the regulator should cover all stakeholders like defaulting customers, the approving authorities and financial institutions that fund projects.
"How can anyone blame the developer if a project is held up due to approval delays or funds for that matter?" he asked.
On the provision in the Bill for mandatory deposit of 70 percent of the cost in an escrow account, Jain pointed out that this is impractical.
Jain welcomed the statement of Minister for Housing and Urban Poverty Alleviation Ajay Maken that the Bill provides for a uniform regulatory environment to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real estate sector.
"Also, the promotional role of the proposed Regulator like standardisation in the sector carpet area, checking money trail and curbing money laundering, professionalism and promoting planned development are music to our ears," he said.