The Hindu Business Line : RBI mulls creating housing stat index

The unorganised nature of the housing sector is evident from the fact that there are more questions raised than answers. People who are involved in this sector directly or indirectly have many issues that are unresolved.

Even the much talked about but the least understood concepts like carpet-area and built-up area have not been clarified under any law. Further, the financial capital of India, Mumbai, has the worst slums in Asia.

Another important issue is the title. The registration of documents for purposes of transfer of ownership with State Government authority (viz. sub-registrar) does not lead to certification of title. There have been a number of cases where the Government department concerned has issued two Khatas to two different parties. Although the official concerned was later suspended, the matter of ascertaining true ownership is pending in the Court and both the owners have not been able to sell the property.

The realty sector promotes parallel economy to a great extent and the Government authorities themselves collude with the concerned parties. Finally, it is not the question of mere statistics. There are very many vital issues that need to be tackled earnestly and urgently.

K.V. Rao, Bangalore

The real estate sector is basically disorganised due to various reasons listed below:

Frequent non-transparent deal-making.

Inability of the common man to understand legal jargon.

Failure of the Government to enforce policies and guidelines to make investor education mandatory by the realty companies.

Unwillingness of the investors to learn about the industry.

Non-existence of a common platform The unorganised activity happening in the sector is responsible for unrealistic prices making it unaffordable for majority of population.

Pulkit Soni, Indore

In India, the data on housing sector is not maintained properly with both borrowers and lenders providing dissimilar information. The value of the property is not declared properly and some people deceive banks by forging documents.

After the RBI deregulated the interest rates, banks, NBFCs and private finance companies are charging different rates of interest for housing loans. While the Government is not happy with the direction of flow of credit to the housing sector, the statistics are also completely unreliable.

K. Nagarajan, Erode

RBI’s idea of creating a ‘housing stat index’ may help them to gauge the level of construction activity in the country that could help policy formulations. They could be had in whatever form or categories that may be required.

A. Jacob Sahayam, Thiruvananthapuram

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