MUMBAI, 10 AUGUST, 2015: Media reports have been mentioning about the new Real Estate (Regulation and Development) Bill, and its possible impact the larger real estate ecosystem. The media reports also mention transparency in the sector as something that would increase real estate buyers’ and investors’ confidence.
“Anything that brings in a structured, transparent format of working is much-needed in India’s real estate scenario; the new Real Estate (Regulation and Development) Bill fits in perfectly,” said Niranjan Hiranandani, MD, Hiranandani Communities. “Real estate needs to get recognized as an ‘industry’ as per the definition, so that real estate companies get treated on par with companies in other industries, I hope the new Real Estate (Regulation and Development) Bill will help us achieve the same,” he said.
Giving the example of structured institutional finance at competitive interest rates, Niranjan Hiranandani said a real estate company should be able to get access to the same sort of options as regards institutional finance, and if the new Real Estate (Regulation and Development) Bill makes it happen, the real estate industry will obviously support it. “It is not just real estate investors and real estate buyers, transparency in the sector would also be positive for the industry,” he said.
“Transparency is a good concept, the real estate industry has been working towards it since past few years – self regulation is something we are all working towards achieving, so in concept, it is something we are in sync with,” he said. “The only odd aspect is if the entire onus is on the developer, with no responsibility being fixed for other stake holders – that is plainly unjust and unfair,” said Niranjan Hiranandani. “So long as all stake holders are treated equally and fairly as regards apportioning blame in the event things go wrong – it should be a positive step for India’s real estate,” he concluded.