Echoes: Regularising Real Estate
The Government of Maharashtra is planning to implement regulations in the Real Estate industry. After years of being in the void the plan may now see a light of day. Is it too late or would it prove to be a boon? We ask…
Ashok Chajjer, CMD, Arihant Universal
If the Government is involved, it will work out. They will of course need to work on the regulations and other aspects. It will benefit both the end user and developers as well. It will certainly accommodate the low income group and provide better FSI opportunities and also the redevelopment schemes will benefit. It will certainly see the light of day. I mean the Rental Housing Scheme is already in. And Mumbai’s developments are bot within and outside the periphery.
Ashwin Shah, MD, Rashmi Builders
Prices are the product of demand-supply. There was a time when in Marine Drive the balcony area was not charged. But then since the demand went up we had concepts like built up area and super built up area. The charges were applicable as the demand went up. I don’t think that prices can be regulated. How the Government is planning to do so is questionable. There are a lot of variables involved. For instance a flat facing the sea will have a higher demand from a flat that does not in the same building. How can that be quantified? If a buyer is willing to pay a higher price then why not offer it to him.
Bharat Shah, Architect, B.C. Shah Associates
There are a lot of sectors which have been regularised. I do not see a reason why Real Rstate should be left behind. Real Estate is an important industry and stabilisation of rates are essential. Of course a lot depends on the amenities provided and the actual outcome of the projects. There will be a few complications and they need to be discussed but overall this is necessary for direction.
Boman Irani, CMD, Keystone Realtors Pvt. Ltd (Rustomjee)
There are several considerations that the Government of Maharashtra should consider before finalising any move. They should not only consult the relevant ministries like CII and FICCI but also organisations like MCHI and CREDAI. It would be wise to interact and consult with them first. Obviously they do see merit in the move but the discussion would ensure that there are no shocks at a later date.
Chandresh Mehta, Director, Keystone Realtors Pvt. Ltd (Rustomjee)
There are various issues with regulations. Implementation here is the key. There are already too many regulations. We have the BMC, the Thane Municipal Corporation, CIDCO, State level regulations, FSI policies, regulations from the Centre like CRZ, environmental issues, the list can go on. Any more can lead to delays, inefficiencies and corruption. It is better that it is self regulated by peers like FICCI, MCHI or a builders association on a similar plinth. To provide teeth BMC, Housing Finance Companies should work in tandem with the accredited self-governing body. We have various bodies for Chartered Accountants, Doctors, so there is no reason why Real Estate should be left out. The Developers will need to adhere to this with a model code of conduct through standardisation. Otherwise it would just another law and we all know how laws are implemented here.
