Bengal chief minister Mamata Banerjee has asked real estate developers to ‘blacklist’ errant builders who fail to deliver homes after taking money from buyers.
Pointing out that the state administration, especially the police department, often gets complaints from harassed homebuyers about builders who fail to deliver, Banerjee asked Credai to impose self-regulation.
“Credai should stand for credibility,” Banerjee said, adding that she would henceforth send the complaints received to Credai West Bengal.
“If the complaints come we will send it to you. Blacklist these people,” she said, while inaugurating STATECON 2023, the annual apex state conference of the real estate industry organised by Credai.
Responding to the call of the chief minister, Sushil Mohta, president of Credai West Bengal, said the association periodically takes action if grievances are brought to its notice. “We have expelled two-three members. Moreover, we also try to resolve the disputes,” he told The Telegraph.
Mohta insisted that the delinquencies are more prominent among small-time local builders than established corporate houses.
While CM Banerjee spoke about mediation by the police and builders’ body, there is now a dedicated law in place by way of the Real Estate Regulation Act (RERA), which deals with such issues. In the recent past, the state widened the ambit of the law to include all developments above 200 square metre (about 3 cottah) and six apartments under Real Estate (Regulation & Development) Act, 2016. Previously, it was applicable to projects above 500 square meter (about 7.5 cottah) and eight apartments.
Banerjee also asked developers to take advantage of the recent policy changes that allows conversion from leasehold land to freehold land.
Liases Foras & CBRE
A report by consultancy Liases Foras published at the event predicted housing demand in Bengal would reach 5.5 million by 2036, providing a strong growth pathway for realtors.
A cocktail of faster rate of urbanisation than the rest of India coupled with growth in population will lead to this demand, the report published during STATECON 2023 on Monday suggested.
It painted a healthy picture of the Calcutta real estate market stating the city witnessed the third maximum price rise among top eight cities.
While the report dealt with the demographic profile of the state and forecast a demand, especially in the residential sector, the CBRE report captured the recent buoyancy in office space absorption, a barometer for the economy and job creation which propels housing demand.
Ram Chandnani, managing director, advisory and transaction services of CBRE India, predicted the city could see highest gross absorption of office space ever in 2023. “Availability of talent pool, distributive workspace model are driving growth in Calcutta,” he said, while publishing a report on Bengal.
