Repose confidence among those looking to put their life’s savings for a roof over their head
Every generation can relate with a film revolving around the woes of the common man in buying a house for himself. In recent years, Khosla Ka Ghosla very astutely portrayed the functioning of the land sharks and their workings. Strangely, all these reel versions were depicting real life issues faced by people looking to buy a house in any state in India.
The prime reason for the complexities revolving housing is because it is unregulated and unorganised. Then, there are state laws that are applicable to real estate and vary across a state, which means there are at least 27 different agencies that have a role to play in the construction of a house, not to forget the numerous other civic agencies and municipalities. Add a bit of archaic laws and the well-known builder and politician nexus, and you can imagine why the sector has seen very little action to improve.
In this backdrop, the loud cheer heard last month when the Union Cabinet chaired by Prime Minister Narendra Modi gave its approval to the amendments to the Real Estate (Regulation and Development) Bill, 2013, pending in Rajya Sabha, was a relief. It is being heralded as a landmark move and something that will completely change the dynamics of the real estate sector. Yes, it can change a lot if it is actually implemented soon and put into action, than get into an endless loop of debate and discussion which can take its own course before finding a solution.
But, this bill has been diluted and it is largely still tilted in favour of the builders than the buyers. Take, for instance, the provision for antifund- diversion in the Bill that has been systematically watered down.
In the 2009 draft, all funds collected from the buyers were to be kept in a separate bank account, from which money could be taken out only for direct use of the project. This has now been reduced to 50 per cent, without any reasoning or valid explanation. Considering a house is what which makes for most Indian’s net worth, it is a big risk that they take when they put their savings to buy a house. On its part, successive governments have provided for and extended tax benefits on housing loan repayments, but none have worked towards ensuring the promise of a house is delivered within the mentioned timeframe.
The only way to ensure that these regulations are meaningful is to make them effective soon enough to repose confidence among those looking to put their life’s savings for a roof over their head. If not, we will again have a film which will in some other way depict the plight of the ‘mango’ man in buying a house to live in.