Make the Regulator for real sector really a reality.

This refers to your editorial Real reform of real estate (Business Standard dt 12/4/15).No doubt, the recent move to have a regulator for real estate deals is a plus and can bring in some semblance of order and uniformity in the fixation of rules and regulations to be adhered to by real estate dealers and developers, it should also ensure that the generation of black money through corrupt and erroneous accounting practices comes to an end and the transactions are transparent. The State Governments have a key role to play to ensure that the regulator has a clear understanding of the discretionary laws and they have been adhered to without any ambiguity or scope for misinterpretation and camouflaging vital information. The unsuspecting customers are always taken for a ride while buying plots or flats or houses and they are always asked to shell a lot of money in the name of Registration Charges, Stamp  duty, deposits towards maintenance with a clause that interest would be paid and adjusted towards maintenance, lease charges for car parking etc. There is no uniformity in the collection of various charges and the treatment meted out subsequently are not made transparent  and very rarely the customers get back any money and the account details. The deposits mobilized run into crores of rupees and their whereabouts are not made available nor properly accounted for. Even the multi national companies who are deep into real estate business find such sources of funds as solid resources for manipulation, diversion, and bribing. The appointment of Regulator is a welcome step and it needs to be strengthened and made effective to check malpractices rampant in the Real estate sector.

T.V.Gopalakrishnan  

(This  Letter appeared in  Business Standard dated 14/4/15) .