The Confederation of Real Estate Developers Association of India (CREDAI), Andhra Pradesh chapter is likely to implement a code of conduct for all its members in the state, wherein developers, recognised by CREDAI (AP), will have to abide by a set of rules laid down by the national body. CREDAI is also slated to set up a consumer redressal cell in AP to ensure transparency in the dealings of the sector. This was announced by C Sekhar Reddy, vice-president of CREDAI (president of the AP chapter), at a conference held in Hyderabad on Friday to discuss the many challenges facing the real estate industry.
Speaking about the stigma attached to the business of real estate (due to the lack of transparency), which is still considered to be a largely unorganised sector, Lalit Kumar Jain, president of CREDAI said, “We have embarked upon a `mission–transparency’ and hope to achieve it through this code of conduct, which is already in place in states such as Tamil Nadu. It will help protect the interest of the consumer and also enhance the quality and standard of delivery of a product.”
But while the industry needs to fix this gap, Jain said that the government too must play a larger role to ensure better growth of the realty sector in India. “Efforts should be made to rationalise taxes and duties and set up seamless and uniform guidelines that would be applicable to all states across the country,” Jain said further stressing on the need for a `single window’ clearance system. Pointing out how the cost of a product shoots by at least 20-25 per cent, due to delays in securing approvals, the CREDAI president said that a comprehensive check-list (of all central departments) was the solution to this problem.
“In some states it takes as long as one year to only get environmental clearance. That ends up adding to the actual cost of construction. With a single window system, we can bring this time down to just about three weeks,” Jain said referring to cities such as Gujarat and Jaipur where getting permissions take not more than a few weeks. He added that CREDAI has already submitted this proposal to Kamal Nath, Union minister for urban development and is awaiting a confirmation on the same.
Talking about the impact of recession on the realty sector Jain said that the market has stabilised post August 2010 and is likely to see another upswing in the next two years. “The situation in AP too has improved October onwards,” Reddy said in reply to questions pertaining to the state adding, “In fact there is a shortage in the old Municipal Corporation of Hyderabad area.” Also present at the meet were T Chitty Babu, president, CREDAI, Tamil Nadu, G Yoganand, general secretary, CREDAI-AP and P Rama Krishna Rao, managing director of Hyderabad-based Manbhum Constructions Pvt Ltd.
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