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“The single most important ingredient in the recipe for success
is transparency because transparency builds trust”... Denise Morrison.
Denise M. Morrison is an American
business executive who served as president and chief executive officer of
Campbell Soup Company from 2011 through 2018. Named the "21st Most
Powerful Woman in Business" by Fortune Magazine in 2011, Morrison was
elected a director of Campbell in October 2010. And no wonder with such
business executives leading the industries in USA it’s considered as one of
most fair deal’s country. I remember my first trip to USA when I wanted to buy
a laptop, as usual I was asking questions regarding its use & warranty as
well features etc. The shopkeeper stunned me by saying I can take the laptop
home, use it & if I don’t like the model I can give back within one month
& get money refund! That was nearly 20 years back & when I ask my friend
along who was US resident by then, what if someone uses it for month & give
it back after use & get another laptop from another shop? He looked at me
& said this is USA & here deals are made on trust & transparency!
Unfortunate the very same Indians who praise USA doesn’t behave in these basic
principles of doing business in our very own country, may it be as a trader or
as a client! And when the business is real estate then the lesser we say is
good is the scene & this I am saying with RERA in action! All those who are
praising RERA (indeed that is good move) may raise their eye brows for my
statement about real estate but then why the govt required to bring RERA (REAL
ESTATE REGULATORY ACT) for regulating real estate is the question I will
ask! And then has the real estate scene improved after RERA? No, I am not
referring to financial calculations of the real estate industry post RERA, they
are hitting low which each passing day but for that many aspects are
responsible, I am referring to transparency & trust aspect of real estate
post RERA or in general!
Reason is I read news in media that
now RERA authority has made it mandatory to display sanction plans at the
ongoing construction site! Wow, innovative, nice, wonderful, client friendly
& many more applauds came to my mind as every day we are breaking new
record of antitrust movement regarding builder-client relation front, it seems! With due respect to RERA’s intention to my knowledge we are
supposed to furnish all the project related information on RERA web site &
it does includes sanction plans as well commencement certificate from competent
authority i.e. PMC/PCMC etc. So why can’t the client who is supposedly looking
for his home check it on line on RERA web site & then the competent authority
i.e. PMC in Pune’s case has already made mandatory to all developers to have a
board on site displaying every detail including land owners name to sanction
number etc etc on this board & the developer doesn’t get even plinth
checking why occupation certificate without attaching snap of such display
board at site! And then all competent authorities now accept only on-line plans
for sanctioning which can be made available on their respective web sites which
they claim they are doing; so, what’s going to be achieved by displaying
sanction plans on site in print form, are we not supposed to move towards
paperless working system in first place? I think RERA doesn’t believe in paperless
policy!
The problem (pardon me that’s only
word comes to my mind) with RERA is everything they seem to be getting done
from the builder though I agree if a builder is sole beneficiary then he should
do all such things like displaying plans at site etc but what about the
sanctioning authorities which are collecting money which now a days is more
than profit margins of the developers! Like the developers has escrow account
to ensure that money collected for the projects is to be used for the respective
project only. Same way why can’t there has been a assurance that development
charges as well premiums collected from a particular locality or suburb has
been used to develop infrastructure of that suburb only, at least a sizable
part of such funds? As by charging all the money for sanctioning, the govt
(read PMC/PCMC/PMRDA) are equal beneficiary from every project which comes
under RERA, isn’t it? So if we want transparency for the end user i.e. flat
buyers then right from water supply to roads to electricity, doesn’t all this
comes under it?
Now coming back to the displaying of
sanctioned plans, indeed it is good initiative but how RERA is keeping control
on this? As what about already thousands of construction ongoing which are
without any sanctions & which even the local governing bodies also have
accepted as illegal, what action is going to be taken on this. As unfortunately
in this country every law is only for the one who follows it & by now even
the flat buyers knows it. My point is, when the so called common-man goes even to buy pack
(peti) of Alphanso Mangos then also he confirms about its quality by checking
every single mango in the peti by verifying its color, fragrance & size
etc. If it is so then while buying flat (read home or plot) of some lacs of
rupees, why RERA or any other govt agency has to repeatedly tell the client
about checking of legality of such home! And even after repeatedly announced by
the govt agencies in all sorts of media yet illegal constructions are being
built & sad part is people book their life time earning in such illegal
homes!
This happens because RERA or any other authority has repeatedly
failed to take strict action on illegal homes which eventually the very same
govt which has formed RERA regularizes such illegal homes after they are built,
is fact which even a school going kids knows by now! Not only this but such
illegal homes gets electric supply, water connection, its agreements gets
registered by sub-registrar (again a govt agency) & the said home buyer
gets home loan also! Now where the issue of displaying sanction plan on the
project site comes in all this process, except few law abiding fools (read
builders) getting prints of their sanctioned plans & will spend for it to
display on their site! This also I doubt that any customer will ever care to
looks at such sanctioned plans as all they are interested in how much
negotiation the builder does & what kind of flooring is there or club house
or gym & that’s all! The only use (read misuse) of such sanctioned plans
display will be by so called social workers in the surrounding who will be very
busy to study the said plan & find out lacunas in it & black mail the
builder! I am sorry if I am sounding negative but unfortunately in our country
most of the times putting bitter facts (especially related to hyped people friendly
govt policies) forward is taken as negative attitude here & my words above
also are no exception to the rule!
If really RERA wants to help home
buyers then make it mandatory to attach only sanction plans to the agreement
while it’s being register as that will be real effective! At the same time where RERA has got any implementation authority
or even cross-checking man power, as what is happening to hundreds of circulars
or orders it has passed to make the builders transparent? Why are we not using
technology instead going for something which is like applying Bernol (a lotion)
whereas whole body has burn injuries, is I never understand with our govt’s
working style! Why don’t it’s made mandatory to display sanction plans on
project’s marketing web site as well builders offices where the customer goes
for booking first than at site? At the same time make people aware by arranging seminars as well
using social media as most people in their life has never seen a sanction
drawings & don’t know how to read it in first place! All they can understand is 3-D views & presentation drawings
by the builder with furniture shown (which rarely fits in actual) &
dimensions written on it! Why by now the RERA authority hasn’t appointed
private architects on their panel at every city & town to make the flat
buyer aware about what is difference between working drawings, presentation
drawings & sanction drawings, so all this verification the client can make
by his own before finalizing the flat! Most importantly what has been being
done for all the projects which are being built without any sanction as well
registrations with RERA, as unless these questions are answered that too by action,
nobody will respect RERA or any authority & their such “Fatwas” i.e. circulars!
As after display of sanction plan
what next we will be asking to the developer, display development agreement,
7/12, his shop act license or character certificate? I repeat I am not against
displaying sanction plan at site & just like any other law abiding
businessman I will be doing it on my sites but issue is whom we are fooling? Transparency
is not something you can force on any person, it’s an attitude which has to be
respected by both sides which are in the deal & more important if someone
is cheating or taking disadvantage of other part then punish him fast &
hard so the next person starts respecting the transparency! Unless we build
such system till then let’s be happy with display of sanction plans & other
documents on site which actually is nothing but just a mask of transparency!
But then in a country which is full of masks, what else can be expected!
--
Sanjay Deshpande
Sanjeevani Dev.
Please view my sharing about real estate in Pune at U-Tube link below..
Please view my sharing about real estate in Pune at U-Tube link below..
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