Realty sec­tor needs to get rid of shady op­er­a­tors

DNA (Daily News & Analysis) Mumbai Edition - - FRONT PAGE -

The world of real es­tate is murky in which home­buy­ers are mostly at the mercy of the builders. Had the courts not come to the res­cue of peo­ple who in­vest their life’s sav­ings for a roof over their heads, there is very lit­tle by way of pro­vi­sion in the sys­tem to check the enor­mous clout of real es­tate com­pa­nies, which en­joy po­lit­i­cal pa­tron­age. The SC tight­en­ing the screws on Am­ra­pali’s 46 firms — ask­ing foren­sic au­di­tors to track down thou­sands of crores of ru­pees in­vested by home­buy­ers, which were ap­par­ently di­verted — will serve as a de­ter­rent for other real es­tate gi­ants as well. The court is seized of a batch of pe­ti­tions filed by home buy­ers who are seek­ing pos­ses­sion of around 42,000 flats booked in projects of the Am­ra­pali group. The top court had cas­ti­gated the Am­ra­pali group for “de­fraud­ing in­vestors” and re­sort­ing to “dirty games”. The real es­tate sec­tor is go­ing through a churn­ing. With Ma­ha­rash­tra en­forc­ing RERA to pro­tect the in­ter­ests of the home­buy­ers, builders are now re­al­is­ing that they can­not af­ford to take buy­ers for granted. How­ever, the poor im­ple­men­ta­tion of RERA in other states show that builders still en­joy the up­per hand, which means a large num­ber of home­buy­ers across the coun­try are vul­ner­a­ble. While the SC must deal with Am­ra­pali in the man­ner it deems fit, it should also be kept in mind that not all builders are insin­cere in their deal­ings with clients. The realty sec­tor needs to weed out shady op­er­a­tors.

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