The Hindu Business Line : Transparency in real-estate index

It is heartening to note that India has moved from Tier 4 (lower transparency) to Tier 3 (semi-transparent) index in the Global real estate transparency Index 2008 (Business Line, July 2, 2008).

This improvement has been attributed to the entry of corporate sector and real-estate investors.

This sector is one of the largest employment providers, especially to the unskilled and semi-skilled labourers and has linkages to industries like cement, steel and brick industries.

With capital appreciation and security against inflation, it the real-estate sector has always been associated with growth and has ever-increasing demand.

However, the entry of black money into the sector as a place for hoarding has also ensured that the prices in urban and metropolitan areas go beyond the reach of the middle-class as well as people who have only white money for investment. Besides, corruption and the influence of local politicians have been sullying the sector.

However, from the Government’s point of view, reducing the stamp duty and registration charges can increase its revenues through higher disclosures.

It would also obviate the need for suppressing the value of the deal by its participants, especially the salaried class, foreign direct investment, corporate sector and the real-estate mutual funds.

This will also increase the transparency index, which will have a multiplier effect on other sectors of the economy leading to higher GDP growth.

P. Esakki Muthu Mumbai

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