CREDAI opposes proposal to form regulator for realty sector

Real estate industry body CREDAI today opposed constitution of a regulatory body for the real estate sector, saying that it would become a "breeding ground for corruption" if implemented.

"The proposed regulatory ill will become a breeding ground for corruption (if implemented)," the Confederation of Real Estate Developers Association of India (CREDAI) President Lalit Kumar Jain told reporters here today.

The Centre has proposed to form a regulatory body through the Real Estate Regulation Bill 2011 which seeks to protect home buyers from fly-by-night developers.

Arguing that the objective of draft regulatory Bill was limited to just consumer protection, Jain sought the jurisdiction of the Bill be expanded to address other pressing issues like long delay in approval, rising cost of material and labour etc,  which hold utmost importance for the sector.

"Only controlling one issue (consumer protection by the regulatory Bill) is not going to help unless the entire spectrum of the industry is handled by the proposed Bill," he said.

CREDAI further questioned the formation of any regulatory body on the ground that there were a number of options and mechanism like the consumer affairs department, the Competition Commission of India redress consumer grievances.

"Then what is the need for increasing the number of windows for (consumers)," asked CREDAI Vice President Getamber Anand.