The errant real estate lobby in the NCR, that is part of Uttar Pradesh, has been forced to change its ways with Yogi regime’s coming
This is a classic cocktail of greed, apathy and criminal neglect causing a cancer. For millions of middle class families cherishing a home in National Capital Region including Delhi, Noida and Gurgaon, it's been a perennial agony for over two decades now. Putting their might and money into buying property — the proverbial dream house — and reeling under the double whammy of having to pay rent and montly instalments, these families have been tortured relentlessly. The greed of the real estate companies has grown unabated even as the bureaucracy remained appallingly apathetic and political leaders displayed utmost disregard to this problem. That's why Uttar Pradesh Chief Minister Yogi Adityanath’s warning to builders to deliver flats to buyers in time and address the ‘crisis of confidence’ comes as music to ears. While the path to the goal may be riddled with many challenges, what this does is to bolster people's hope enormously.
In fact, in the run up to the Assembly election, Prime Minister Narendra Modi was emphatic in spelling out the course the Government would take if the BJP came to power. In his rally at Ghaziabad in February this year, Modi had sternly warned that he would weed out this rot — inflicted by decades of conspiratorial cocktail of apathy by Union and State Governments. To safeguard interests and rights of the millions of buyers, he had asserted to end the reign of terror of the ‘builders’ lobby’ and spelt out how his Government had created a law to regulate the real estate sector. True to the intent of the Government, the Real Estate (Regulation & Development) Act or RERA came into effect from May 1, 2016, and as per the provisions therein, States are to notify rules for carrying out the provisions of the Act. While there is some confusion on RERA in Uttar Pradesh, given that the present Government revised the rules created by the Akhilesh Yadav regime, which were apparently builder-friendly, a semblance of administration is palpable in the State.
While the courts have often come to the rescue of hapless buyers, for the first time, the Government seems to be flaunting its baton on these errant and thick-skinned builders who have for years fleeced the middle class mercilessly, without any remorse or fear of the law. On Monday, in a first-of-its-kind action, authorities in Gautam Budh Nagar arrested the CEO and director of a real estate giant over their failure to deposit labour cess of four crore rupees for the last three years. Notices have been served to seven more builders for similar lapses.
However, the buyers’ glee on this was short-lived as they soon got anxious about what may happen next. In Noida, Greater Noida, Ghaziabad and even the rest of NCR, there are three broad categories of buyers. The first are those who have got the possession but living in their flat without registration, as builders have failed to obtain a completion certificate from authorities concerned, which is a mandatory pre-requisite for it. The second are those who have made full payment to builders by obtaining loans, paying EMIs to banks, also paying rent, and awaiting handover. And the third category comprises those who have gave a handsome amount to book their flats. While RERA may come into direct rescue of the third category of buyers, buyers of the first and the second kinds are clueless and unsure of the future.
Many experts, buyers’ groups, lawyers and law-makers believe that the problem is indeed Herculean, vexed and perpetrated by vested interests. They say given the scale of the problem, it would require a gigantic surgical strike, that only the likes of Modi and Yogi can envision and execute. Their recommendations are pragmatic. First and foremost, in case of all defaulting builders, seize their land pool, unsold inventory, and other properties including their sprawling office complexes, sell these and pay dues to civic authorities, and facilitate registration of those who are staying without it for years. Next, for half-construct projects, engage small or reputed developers and assign them the task of completing it — pay them from the money recovered by selling defaulters' inventories. And, for the third category, refund their booking amount with applicable interest rates and allow them the option to go to other builders — anyway, their interests are taken care of with the provisions of RERA.
There is no other option which would bring the curtains down on a vexed issue like this and one which has been caused by the most abhorring complicity between previous Governments and the real estate lobby. Only the Modi-Yogi duo can purge the system of this cancer, which threatens to debilitate and maroon millions.
(The writer is a strategic communications professional)