Land/Real Estate in Delhi- Inputs on Root Causes
Based on your inputs, we have summarized the key issues with Land/Real Estate in Delhi.
Kindly review and help identify root causes for these issues. Once they are known, we will be able to discuss effective and implementable solutions that can then be shared with CM and his leadership team in the form of a whitepaper.
We look forward to your inputs!
Land/Real Estate in Delhi - Key Issues
1. Builders don’t finish the construction in the promised time frame
2. A lot of real estate advisors turn out to be frauds
3. Too many terms and condition always confuses the customer
4. Possessions are not given on time
5. Land mafia encroaches on Government land
6. Huge difference between circle rates and market rates thus leading to generation of black money and loss of stamp duty
7. Builders do not adhere to terms and conditions and hence no regulations in absence of any regulatory authority
8. Not enough parking spaces built with residential apartments
9. Huge amount of cash transactions take place in real estate purchases
10. Unauthorized construction all around Delhi is creating a menace more
2.0 In the Builder Buyer Agreement the following details must be clearly provided:
2.1 Cost of each item with indication whether the item is being provided to the buyer or not eg covered parking, uncovered parking, power backup (kVA), club membership, water connection charges, electricity meter charges, etc. At the time of taking possession there should not be any extra item for which the buyer should have to shell out money.
2.2 How plot of land was acquired – through purchase/development agreement/allotment by Authority
2.3 Details of all approval required and approvals taken along with reference no and date
2.4 If project allotted by Authority, then schedule of payment
2.5 Project Schedule with full details of milestones and actual achievement of milestones on a monthly basis
2.6 Commitment by developer that money collected against a project will not be used for any other project
2.7 Format along with full details of all documents required to be submitted by buyer at time of possession
2.8 Format of handing over/taking over of possession
3.0 Details of land allotment to each builder as well as details of all approvals granted and approvals applied for but not granted to each developer should also be posted on the website of the Authority. more
One example will help us understand the concept better. Whenever a new construction activity is undertaken, say construction of a residential house. The builder is bound to display the sanctioned plan at site. One can ask for its display, if the same is not done. Rules are clear on what maximum timings the construction activity can be undertaken during the day. Any deviation can be reported to the police & the issue can be redressed.
With regard to generation of black money, we need to redefine the circle rates of respective areas, after ascertaining the going rates for the property in given area. This has to be done at defined periodicity. Once the circle rates for the area are realistically refined, the issue of black money can be drastically reduced. Stamp duty on real estate transfer should be simultaneously brought down too. This will take away the incentive of reduced pricing of property at the time of transfer. Real estate is the biggest generator of black money as well as mechanism of parking thereof.
A single window permission process which is time bound, will go a long way in reducing many issues. If the deptt concerned are forced to adhere to timelines for response to various applications, the menace of corruption will be addressed to a large extent. Simplification of regulatory processes therefore is a major step to overcome corrupt practices.
We are sometimes unknowingly contributors to many issues faced by us. For example, we hesitate to speak whenever we see rules being flouted, e.g., encroachment of public land/ open areas in our neighbourhood. RWAs too avoid getting into controversies for danger of displeasing its own members. We often sight good neighborly relations as an excuse, forgetting that it is our neighbourhood only who is in breach of law to our disadvantage. more