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The real estate regulatory Bill addresses many of the issues faced by the home buyer. But it falls short in one important facet — to acknowledge and suggest solution to the problems arising from the government’s actions or inactions in the real estate market. The government has been gradually reducing its role in providing shelter to the common man. Earlier, housing development boards of local governments developed and funded affordable homes for low- and mid-income segments. These projects were phased out and buyers now have to take recourse to property developers only.
Home buyers who want basic necessities such as assured power have to buy homes in projects that provide these ‘amenities’. Want parks in your neighbourhood? Don’t depend on the government to build one, but buy a home in a pricey project that has a park — funded by you, of course.
The government does not even think that handling sewage water is its responsibility. Large residential complexes are required to install waste water treatment to reduce the burden on the municipal system. And who pays the maintenance and repair bill, which runs to over thousands of rupees? Home buyers, of course.
Home buyers also pay a hefty price for approval delays. Builders pass on the financing costs incurred while waiting for clearances from multiple departments to home buyers. The net effect is that buyers who want a roof over their head pay sky-high prices due to the government’s reluctance to raise even a little finger to care for the home buyer.
Given the big role the government can play, it is unfortunate that the regulatory Bill pins the responsibility on the developer and real estate agents, but none on itself. It limits its role to setting up a regulatory authority and a tribunal to hear cases. What will help is if there are commitments on approval processing time, some ways to ensure clean land titles and processes to take action on errant local authorities for lapses in compliance monitoring. Only then can a home buyer be assured of real protection.
Chief Research Analyst
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