The government should think about correcting their mistake
The government in its effort to gain foreign investors has announced in its 2014-15 Budget two important measures to increase the flow of foreign funds in real estate and reductions in the minimum size of projects from 50,000 square metres to 20,000 square metres, and the investment amount in a project from US$ 10 million to US$ 5 million.
But what is unsure is whether such an investment will be enough. C Shekar Reddy who is the national president, CREDAI, stated that the biggest enemy of real estate is the weird concept of no objection certificates from different authorities. It amounts to the delay and corruption. Once the master plan is notified, areas to be developed earmarked and guidelines in place, state governments should come up with upfront approvals. The local bodies should take care of the guidelines.
However it is still not clear as why will an investor come to India when regulatory measures are so uncertain and there is complete lack of transparency in grant of various approvals? He further added that if the development authority sells a wrong title to anyone, be it a developer or a homebuyer, it should indemnify the loss. Only then will the credibility of the government agencies count.
Source: Hindustan Times (Delhi Edition)
