I agree with your editorial, ‘Reviving real estate’ (April 28). The Real Estate Bill needs to be converted into a law so that developers fall in line. It is an open secret that clearances from various government agencies and departments take time but that alone is not the reason for the escalation of costs. Delays happen because builders move funds from one project to another without focusing on completing existing ones. By not letting buyers know, the builder manipulates the whole scenario. Till builders clean up their own houses, even banks will not fund them.

Bal Govind

Noida, Uttar Pradesh

There are two reasons why real estate prices do not come down. A sizable quantum of unaccounted money is invested in this sector; this enables evaders to conveniently park funds here without paying tax for a long time. The promoters have to grease the palms of many to get sanctions, from plan approval to completion certificate; this they necessarily pass on to buyers. There’s not solution for either problem. The interest charged by banks is not a factor at all.

S Kalyanasundaram

Email

Transparency in the real estate sector will be welcomed by buyers who are confused by the present state of affairs. If State governments increase the floor space index we will see the cost going down; this will bring down prices across the board. But the States have done nothing to increase FSI. Registration costs are also on the higher side. Real estate developers were prepared for a 10 per cent GDP growth which is the reason for high inventories in the system. The growth needs to move to a higher trajectory to get inventories down.

CR Arun

Email

India being bullied

A day after India celebrated World Intellectual Property Day (April 26) came the US trade representative’s annual Special 301 report placing India on the priority watchList, same as last year. This report is an annual review of the global state of IPR protection and enforcement. It assesses US trading partners’ efforts to protect and enforce IP through a list identifying countries that are of concern.

The report comes on the back of contention between the two countries on several trade issues in the context of India’s resolve to promote local manufacture to create domestic jobs. India, China and Russia are among the 11countries targeted by the Obama administration for leaving American producers of music, movies and other copyrighted material open to rampant piracy.

The report has pegged losses from piracy of music and movies in India at around $4 billon a year and the commercial value of unlicensed software at $3 billion. India has also got similar losses to present before the USTR owing to piracy of music and movies of Indian origin.

The US is placing the 11 countries on a priority watchlist which may lead to sanctions if the US brings cases to the WTO. India is facing a huge threat from the pharma lobby in the US and other developed countries in the name of IPR protection.

Philip Sabu

Thrissur, Kerala

Act now

The article, ‘Decoding India’s jobless growth’ by Ritesh Kumar Singh (April 27) gives importance to productivity enhancing skills. The youth of India should enter into manufacturing to increase productivity. India should depend on its own products rather than on imports. The Government should give attention to the labour laws as many workers in India’s corporate sector are contracted. SME and first-time entrepreneurs are not able to compete with imported products because of high transaction costs. A prudent macroeconomic policy will bring in more FDI; this will aid in job creation.

S Muthulakshmi

Virudhunagar, Tamil Nadu

LETTERS TO THE EDITOR Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.

Erratum

With reference to the item, ‘Ingegno Transmedia in Chennai’ (April 25), Ingegno Transmedia has clarified that it is a 1 year and 10 month-old startup, and not an eight-year-old startup, as reported. The error is regretted.

comment COMMENT NOW