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CREDAI Orissa sets up grievance cell to restore trust

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CB Richard Ellis, CREDAI, Lalit Kumar Jain, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comIndiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyThe Orissa chapter of the Confederation of Real Estate Developers Association of India (CREDAI) aims to put an end to real estate cheating cases. As part of the initiative, CREDAI has set up grievance cell to restore trust.

As land and house prices soar in the state, cases of cheating by realtors are also on the rise. The association believes this grievance cell would help provide a fair deal to the buyers. The core committee of the redressal forum would consist of a chairman and two members.

However, an advocate and a structural engineer would also assist the committee as empanelled members. “At present, the image of the real estate developers is not very customer-friendly. But we want to change that. We want to prove that the redressal forum can actually solve the problems of consumers, whether the issue is related to construction or payments,” said D.S. Tripathy, President of the CREDAI’s state chapter.

CREDAI, however, expects customers to pay an extra amount at the rate of Rs 1 per square foot of space purchased to avail the services of the forum. They will also be expected to fill up a prescribed form, which the concerned developer would deposit with CREDAI so that the consumer’s name will be registered and any complaint could be addressed quickly in future.

Tripathy said that registration of the consumers through a prescribed form would also help developers avoid unwanted complaints. There would be three copies of the form, of which the consumer, the developer and the CREDAI would keep one each.

“We are going to provide justice to the consumers. But, the purchaser is free to go to a court if he or she is not satisfied with the verdict of the forum. We are going to have a computerised database of all our consumers. The CREDAI branches in Pune and Chennai are already doing this and redressing grievances of the people,” said Vice-President of the local chapter Binay Krishna Das.

Ahmedabad-based banker Niladri Bihari Panda, who has invested in two properties in the city, said the formation of an appellate body by the builders through CREDAI will actually increase their credibility.

“While purchasing the first flat at Patia, I had experienced no problem with the builder as everything was done in time. However, while purchasing the second one at Sundarpada, I hope the builder might not meet the deadline and I have to give more equated monthly instalments before getting my property delivered. Had the redressal forum been formed earlier, I would have appealed the body to make the process of delivery of my apartment faster,’’ he said.

Citing lengthy approval system of housing projects as one of the major reasons behind project delay and cost escalation, the members of the CREDAI added that the various approval authorities issuing no objection certificates and granting building plans should work in a single-window system for faster execution and timely delivery of properties.

“With the delay by the approval authorities in issuing certificates, a person with Rs 15 lakh bank loan will have to cough up Rs 1 lakh extra if the completion is delayed six months. Likewise, the builder has to invest for six months on the account of the maintenance cost,’’ Das added.

“To increase our credibility, we have already come up with a model code of conduct on January 15 this year. The opening of the grievance cell is the second step of our confederation to bring in transparency in the business and simultaneously take care of the stakeholders’ interests,’’ he said.

Dubious real estate deals under I-T scanner

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Income Tax Department, Finance Ministry, Government of India, CAG, Comptroller and Auditor General of India, Hasan Ali, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyThe Income-Tax department is planning to look into all suspected real estate deals to check involvement of black money component and tax evasion in such transactions in the past few years. The drive will begin in New Delhi and gradually extend to other metros.

“Property deals will be reviewed starting with Delhi and action will be taken in appropriate cases,” Central Board of Direct Taxes (CBDT) Chairman Sudhir Chandra told reporters on Monday.

The I-T department has raided premises of many real estate developers, including the major players, in the past few years after it received many complaints of the involvement of black money in these deals.

Officials said they unearthed black money from most of the builders who were searched. The review will include both individuals and corporate property dealers. It will keep a watch on sources of funding for developers projects.

The cash component in property deals is expected to be in the range of 40-60 per cent, which goes unaccounted. For instance, if somebody has bought a house for Rs.50 lakh, its value could be just Rs.25 lakh on paper. This helps the builders evade tax on the cash amount.

The focus on real estate sector also assumes significance as the department is now after the ‘big fish’ rather than closely scrutinising the cases of small taxpayers. The amount of assets seized by the I-T department has more than doubled in the last four years, while the number of raids came down.

I-T department searched 529 groups in 2006-07. The number of searches dropped to 454 in 2007-08, 429 in 2008-09 and 409 in 2009-10.