Mumbai : A regulator is surely required but we need a comprehensive one with transparent systems, said Mr. Lalit Kumar Jain, CMD –Kumar Urban Development Ltd. (KUL).

Though many issues have been pointed out since ages, the bill is a retrograde step and breeds ground for corruption.

Major concerns like; online registration processes without human interface to avoid corruption, all the stake holders to be governed by the regulator to avoid further delays in approvals and NOCs. The government seems to have ignored these suggestions and instead come up with a ridiculous concept of revocation of registration, as it will do more harm, promote more corruption and developers will have to tackle such knee jerk situation.

The bill allows huge opportunity of exploitation as it has provided 15 days of period for deemed approval, while regulator can scrutinize the proposal. Instead an online automated process could be a better solution.

The escrow account between the buyer and developer should have been on a pro-rata basis, linked to the construction cost and not on fixed slabs of 50% or 70%. The government has obviously not factored the increase in cost of construction.

On the positive side, one is happy to note that the RERA remains the lone authority to handle real estate related grievances. This will help avoid a plethora of court cases. Also the data on supply of housing will be available due to a regulator.

The regulator will force developers to give full disclosures which will make fewer of them survive. This will mean that the supply will be hit in a market where the demand-supply mismatch is a perennial problem. In turn, this will push the cost of housing which many feel is high even as of now due to various factors like delays in clearances, high cost of inputs like land, finance, steel and cement.

Source : Sachin Murdeshwar