Too many laws in the Indian realty sector
Over the years, the real estate sector of the nation has been flooded with numerous laws, which has increased the burden on developers and builders. According to CREDAI(Confederation of Real Estate Developers Association of India), the real estate market is governed by too many laws, a new one will just be an ‘unnecessary addition’. Similar to the Real Estate Bill 2013, all the laws related to realty sector aim at promoting accountability and transparency during property transactions.
The real estate sector is tagged as one of the essential tools that drives the Indian economy along with numerous other industries like paints, steel, consumer durables, cement, retail etc. However, the sector is tainted with the inadequate regulatory framework. In a move to safeguard the interest of the people, developers and stakeholder and to keep the unscrupulous players at bay, the government has incorporated numerous laws in the realty sector to streamline it.
Laws tightening its grip
As per the CREDAI officials, the realty sector is governed by 42 legislations that involves 25 labour laws. Some of the primary laws include- Real Estate (Regulation and Development) Bill 2013, The Registration (Amendment) Bill, 2013 and the Land Titling Bill, 2011.
The laws enforced on the real estate sector, often do not act in favor of the developers and builders. For instance, according to a clause of the Real Estate Bill 2013, it is mandatory for the developers now to mention the name of the buyers on their website. The need for such a move, however, is still unclear.
Why the sector needs laws?
Real estate makes an important contribution to the Indian economy. 7% of the country’s GDP is played by the realty sector, hence it becomes imperative for the government to frame rules and policies to settle property disputes.
Going by the market sources, around 260 million euros have been introduced in the first half of the year in real estate via FDI. The sector aids and supports nearly 250 ancillary industries and the demand for housing units is expected to reach 24.3 million by the end of 2015. Hence, the sector should be monitored and ruled under certain laws that promise to keep all kinds of unscrupulous activities at bay.
