The passage by parliament of the Real Estate Regulation Bill has been celebrated by most commentators, and certainly by potential house buyers. However, there are two kinds of people who are dissatisfied. One, the rather large number of people who have already paid for an apartment but have been left hanging by developers. These people are disappointed that the bill does not explicitly tackle any retrospective action. One hopes this will be handled in some way.
The other group who are dissatisfied are, obviously, the real estate developers. There have been a number of news stories in which developers--some named and some anonymous--have painted a dire picture of the fate that awaits their industry once the real estate bill starts getting enforced. They say that the bill will lead to delays, high cost, fewer number of projects, and shortage of housing. Among other things.
These claims are quite interesting. When you read through the bill critically, everything it contains actually boils down to four things that it's trying to get developers to do:
One: You should deliver the house for which you have taken the customer's money.
Two: Don't lie about the size and features of the house.
Three: Don't lie about whether you actually have the land and the permissions to build the project.
Four: Don't embezzle the customer's money and use it for other purposes. That is all, really. The rest of the bill is just the detail of enforcing this.
Apparently, this appears to be a huge burden to our country's real estate developers. And we all know the reason. The business model of all but a handful of developers is based on violating the above. Instead of complaining about the bill, they should introspect on why such a law was needed for this industry alone. The harsh reality is that standard operating procedures of most real estate developers are based on cheating, lying and embezzlement. If such people are penalised, punished and forced out of this business, then everyone else (including the honest developers) will be better off.