Mr. Anand J
Gupta General
Secretary of Builders Association of India as well as Chairman
& Managing Director at Choudhury & Choudhury (India) Ltd, (Civil Engineers, Builders, Real
Estates Company) and having completed 35 years in the real
estate industry and have visited and studied various advance part of the world.
Sharing his experience and views with Nawaz Sayyed, Editor, Indian Realty Voice.
Will RBI's rate cut policy curb the
negativity of realty sector?
RBI's rate cut
policy as regards to CRR can help the sentiments of common man. As it will
reduce the cost of interest & in term EMI. It will also reduce the cost of
construction. RBI rate cut policy is definitely being a good instrument to curb
the negativity.
What
steps government should have to take to deter for rising irregularities in realty sector?
Government has
to make a comprehensive reforms/ administrative reforms and create a good deter
to curb rising irregularities in real estate sector.
(1)They must have some kind of
prequalification and/or registration system for developer. Catogarising what size
of realty project each company /organisation is capable of taking up the
project. As it is happening in all infra structure project awarded by State
government, Center Government bodies & their undertaking. People who are
not qualified to execute particular size of work and not having a credential to
organise a fund and required technical knowhow cannot be allowed to continue in
the industry and play with the people.
(2)In most of the case generally
irregularities are done by developer with complete blessings of concerned government
officer / approving authority and in collusion with end user. As by these
irregularities, all these three people are beneficiary. Govt. should have a
heavy punishing policy to the officer under whose supervision and knowledge
such an irregularity was committed by developer and/or user, once we set some
good example of punishing one in 1000, another 999 officers, developers and
user will never dare to use such an irregularities. Punishment can also be in
form of putting heavy financial burden on concerned people to put a deterrent
on such an irregularities. Presently in
the name of punishment we only transfer the person or suspend him for few days /month.
As compared to the monetary gains he makes this so called punishment is very
negligible. Developer & user is also required to be heavily and financially
fined & punished for collusion in irregularity. Govt. should also come heavily on punishing
to all those patronising slum / illegal construction.
BMC
has introduced "New Capital Value Based Property Tax System" is it in favour of common man?
Yes, in my
opinion it is very right decision but taken very late. Everywhere property tax
has to be design on a capital value base and I personally feel it will
rationalise the capital property tax system and ultimately in favour of a
common man.
What
steps or plans Builders Association of India has drafted to curb rising prices of property or to make houses affordable?
Builders of
India has suggested to government in past following suggestions:
(1)There is a continuous flow of public
from rural to urban area but we have failed to increase the boundaries of
corporation, township. We have to add
the area for town, commensurate with increase in population. So that demand and
supply do not mismatch.
(2)Government is wrongly have drafted N. A.
Rule unnecessarily became hurdle to make agriculture land into non agricultural
land for housing in urban area. We have to understand that presently from
Bombay to whole Konkan belt there are 35% of Agricultural area remains
uncultivated and neither it is being use for agriculture nor is being use for
urban or any other purpose.
(3)Builders Association of India has
suggested that government as government is coming out with "Nava Seva"
bridge, on other side of Bombay i.e. "Nava Seva" (Raigadh district) is
having more than 7200 sq.km. area. and having only 22 Lac population.
(4)We have requested government of
Maharashtra to make a second new Mumbai in phase manner in Raigad district by
designing the infrastructure of Road, footpath, sewerage lane, strong water drainage
line, water line to take the load of 10 FSI.
They can appoint Cidco, MMRDA as the nodal agency. As once the bridge is
made these area will very near to south and Central Mumbai, people will find
convenient and will prefer these as compared to Virar, Palghar in Western
Railway and Badlapur, Kalyan, Dombivali in Central Railway area. As increase in
area will be more than 5 times of present area of Bombay, Thane a huge housing
stock may be 10 times of present Mumbai can be created, this mere announcement can
drastically reduce the prices in Mumbai.
(5) Secondly BAI has suggested government a
time bound implementation of 14 Lac slum rehabilitation and reconstruction of all
the 15 to 16 Thousand dilapidated building available in south Mumbai can create
9 Lac houses of 400 sq.ft. for self, these houses will be over and above houses
given to present slum dweller and present resident of these 15000 buildings. If
government uses an administrative skill and bind tenant, owner and officials in
time bound system and makes an announcement that after 5 years all incentive FSI
will be removed if they fail to make to use these incentive FSI policy.
Realtors
bodies such as MCHI, Credai are conducting several property expo, will it helpful to increase absorption rate?
I don't think so.
Realtors body such as MCHI, Credai, BAI conducting several property export to
help their members to market their
product, it also helps to them to create a platform for customer, bank
for home loan, but no way it can help them it increase absorption of rate.
In
today's scenario several builders are not fulfilling their promises what
they are mentioning in brochure and advertisements or
at the time of booking flats, what you will suggest punishment for such
builders ?
First of all as
compared to 70's & 80's today builders have improved themselves quite lot. At
various occasion they have been penalised by consumer courts and various courts
on their misrepresentation in brochure and irrational advertisement. Presently all
developers are very careful in preparing their broacher and making commitment
to their customers. According to me
after 2000 most of the unprofessional builders packed up or got finished and
other few who have remained are likely to be got finished for continuing their
work in unprofessional way. District and
State Consumer courts have done their good job in punishing all the builders. More over competition commission of India is
also have created some good example in punishing few builders and there are sufficient
provision under the both the judicial authority to punish builder heavily. Customers are advised that they should be
alert in choosing the credit worthy builders and make full use of consumer
courts and competition commissioner of India for any irregularities committed or
misrepresentation done by any of the developer.
Being a Secretary of Builders Association of India,
as well as you have served to this industry for long time what are your
suggestions to builders lobby to come out from this crisis period?
Presently being Hon'ble
General Secretary of Builders Association of India and having completed 35
years in the industry and have visited and studied various advance part of the world
and after comparing their Real Estate setup with ours, I don't think there is
any crisis for builders in this country.
Few builders are in money crisis mainly because of their irrational over
trading and putting Bank and customers money to create more land bank and not putting
the money to complete the project.
Presently we are having only 31% population in urban area and advance
part of world like Europe, America is having more than 70% population living in
urban area and in general India country as whole wanting /struggling to match
with this advance part of the world. To reach
this 31% population in urban area to 70% population in urban area, it will take
minimum 50 years and hence having housing shortage in all part of country in urban
area will continue to remain in short supply and this will make continuous good
and flourishing business for another 50 years in this country for all the real
estate developers.
