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The government is planning to formulate a policy to support the booming real estate sector and to introduce regulatory body to check tax evasion and corruption in growing prospective sector. The government's consideration came as it the sector is emerging as a potential business.
The government is eyeing for another reason. It is perceived that some unscrupulous developers are taking advantage of outdated and complicated policy and guidelines which need to be replaced by modern ones.
At present two proposed laws namely- Private Housing Policy-2002 and Multi-storied Building Construction Policy-2002- are for government consideration which must go through open debate with participation of all stakeholders before being enacted as final law.
Though the housing sector has been exempted from VAT, registration and other taxes have been reduced to 13.5 per cent, developers fail to offer houses at competitive prices. It is expected that the proposed watchdog would oversee all facets of the business including price, legal and environmental compliance, quality, tax payment and other related issues.
The real estate sector, which employs about one million people directly or indirectly, has strong contribution to the growth of a host of backward and forward linkage industries like cement, tiles, aluminium, ceramic and painting.
As the industry is fully supported by backward linkage, it contributes to the government exchequer 100 per cent in value addition. But due to loopholes in the existing rules the city is going to turn into an urban nightmare if such practices are not stopped immediately. The developers are so commercial that they do not like to leave any open space unused, depriving dwellers of breathing space.
It is advised that unless utility services, sewerage facility, parking space, children park and required open space is ensured, developers should not be permitted to go for building a house. Civil society members and independent think tanks should mobilise public opinion so that government can formulate and implement the required policy for the sector.
If people get united for a cause, government is bound to force the developers to comply to the laws.
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