Urban development minister Kamal Nath admitted today that “the government has not responded to the tremendous growth in the real estate sector in the last one decade appropriately”. Addressing the 11th National Conference of Credai (Confederation of Real Estate Developers’ Association of India) in Singapore, he said not much progress has been made in the area of “land economics” too.

Asking the government to facilitate a single window clearance to help bring down corruption in the real estate sector, Credai president Lalit Kumar Jain said, “India is one of the most corrupt countries in the world and the real estate sector is its biggest contributor.” While “affordable housing” has become a favourite subject of politicians, not much has been done to develop it. The sector has to bear with huge delays in approval of projects and also risk stoppage of work.

Real estate experts said about 50-60 per cent of the sale value goes towards approval and taxes. With a change in policies, the costs can be reduced. This would directly benefit the middle class. Jain said, “Developers are unable to take up affordable housing projects. We need to connect to 150 officials across 40 departments of central, state government and municipal corporations. This takes 2-3 years and to speed up things, money is exchanged.”

In his speech, Kamal Nath said “mission transparency is not only for the real estate but also for the government”. “We are not building for the future, unlike Hong Kong and Singapore. We are still catching up with the past,” he added. Indicating that his ministry would organise a joint conference with all states on improving real estate practices, Kamal Nath said, “We have to move from the stage of no practices and bad practices in real estate to best practices. I will, in my discussions with state governments, ask them to engage at the regional level and then we will soon have a conference in Delhi.”

Credai has submitted an action plan to the urban development ministry with a detailed checklist of approvals required and those which can be done away with. It mentions a dateline, including finalising the document by Credai by August 15 this year, finalising comprehensive check list and implementation by all state governments by January 26, 2012 and making all necessary amendments by April 28 next year.


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Is this muted acceptance good enough ? What about millions of people who lost money to fraudulent Builders & brokers & continue doing so ?

Is admittance of wrong doing good enough ?
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