CREDAI (Confederation of Real Estate Developers Associations of India) on Thursday presented a time-bound programme to the government to tackle the menace of corruption in the real estate sector. “The Confederation today presented a time-bound action plan to union urban development minister Kamal Nath at the two-day 11th National Conference (NATCON) of CREDAI in Singapore,” said a CREDAI official. CREDAI national president Lalitkumar Jain, said the developer community was being branded as being corrupt. He said the confederation woud seek an appointment with the prime minister to discuss ways and means to check the cancer of corruption instead of indulging in blame game.
“This country is, sadly though, rated to be one of the most corrupt nations of the world. Any citizen of this country will feel hurt and humiliated. The real estate sector is rated to be the biggest contributor to this notoriety. I and all my colleagues in real estate feel greatly insulted,” said Jain. He added that developers were victims of the system and not the beneficiaries. Jain said the real estate sector was being branded as the breeding ground for black money and corruption. “It is the various government procedures and delays in clearances that rise to corruption. We curse every person who exploits us to give us a legitimate permission which we deserve instantly and without any illegitimate demand,” he said.
Talking about the long process of clearances, he said this process involved connecting with more than 150 people in about 40 departments of central, state government and municipal corporations. “After investing heavily in land, even a day’s delay in approvals adds to the costs. And in desperation and when speed becomes important, the concept of speed money creeps in,” he pointed out. Every developer has to obtain 40 certificates, NOCs and clearances. “The McKinney report to the Government of India as long ago as in 2001 said that land approval related hurdles are costing 40% higher to home cost,” he said. CREDAI presented two key documents to Kamalnath - a compilation of best practices by some state governments that can be emulated by the rest of the country and a comprehensive checklist for approvals.
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