Generally irregularities are done by developer with complete blessings of concerned Govt. officer

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.