Real estate Developers want self regulatory body with punitive authority

The National Real Estate Development Council, a realty trade group, has proposed the formation of a self regulatory body for real estate industry to liaison with the government.

The proposed body could operate in four levels—centre, state, district and town levels and will have representation from stake holders such as the ministries of urban development, as well as real estate developers and others managing bodies such as the Delhi Development Authority.

“The authority should be set up under legislation. It will put down rules for developers and if there are any violations, there should be punitive action,” R R Singh, director general, national real estate development council, was quoted in Mint.

The council suggested that a central regulatory authority should be set up in the National Capital Region and this authority should provide guidelines for state, district and urban real estate regulatory authorities. Real estate in India is largely an unorganized sector. The sector has many fly-by-nights operators who engage in a host of malpractices such as unauthorized construction and building unsafe structure or failing to complete projects on time.