Immediate Need for a Hard- Nosed Realty Regulatory Authority

Following the recent disaster at Moulivakkam, near Porur is it time for Tamil Nadu’s example and setup a dedicated real estate regulatory authority.

The clamour for better enforcement in the real estate industry is louder in Tamil Nadu than ever before, following the collapse of the building in Moulivakkam that caused above 60 fatalities and injured a further 25. The disaster event has suddenly awakened us to the brutal consequences of permitting developers / promoters, especially those who are inexperienced, to construct high-rise buildings in areas where the soil & other factors have not been tested

Incidentally, a national Realty bill of this kind has been in the pipeline for many months now. The reason it has not yet been approved, according to Mr. Chitty Babu, Chairman & CEO, Akshaya Homes, is because the UPA did not do a very good job of formulating it.

Chitty Babu, Chairman
 & CEO, Akshaya Homes.

“It requires a complete overhaul,” says Mr. Chitty Babu. “It focusses only on developers / promoters / builders and for some reason seems to exclude all other parties involved in the realty industry. Why are financial institutions that provide the funding and the government authorities that sanction approval exempted? All the stakeholders must be brought under the purview of such a bill.” Mr. Chitty Babu has his reservations about the Maharashtra method, as he thinks a central government bill will avoid the confusion arising out of many states having their own versions. He also believes that the CMDA (Chennai Metropolitan Development Authority), which has recently come under much criticism, must be allowed some respite.

 “We can not blame the CMDA,” he says. “I do not believe that it is equipped with the necessary human resources to conduct periodic quality checks, clearances & inspections.”

This only emphasises the immediate need for a hard-nosed real estate regulatory authority for the state. Despite repeated attempts, CMDA officials remained unavailable for comments on this topic.

The Confederation of Real Estate Developers’ Association of India (CREDAI) has provided the state government with a list of changes to be adopted into its upcoming real estate regulatory bill.

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