Monday, September 29, 2014
Saroj Kant Choudhary, Indian Institute of Technology Kharagpur writes on Regulation of Realty Sector for Consumer Welfare: Indian Perspective.
ABSTRACT: Economic liberalisation initiated by P. V. Narshimha Rao Government in early 90s propelled the Indian economy and opened gates for foreign investments. The result was seen as increase in employability, per capita income and increasing pace of urbanisation that together added in the growth in GDP of the nation. This increasing pace of urbanisation with almost 31% of urban population of 1.21 billion populations (Census 2011) created an overwhelming demand for residential and other types of commercial space including residential complexes, shopping malls and office spaces. As a matter of fact, more and more interested players pooled and contributed their resources and funds in the growth of the reality sector especially in the urban agglomerates.
The demand for huge inflow of money to sustain the projects, the developers and builders were often tempted to procure funds and resources from sources that are not legally justified. There has been constant endeavour on the part of Government to bring it under strict regulatory compliances for proper growth and development of this sector for optimum benefits of the consumers and to restrict abusive trade tactics, cartelisation and abuse of dominant position by these operators that are against the principle of competition Law.