Realty body CREDAI to set up institute for research & studies

New Delhi: CREDAI, the apex body of realtors, Thursday announced it would establish an institute for research and professional studies as well as provide scholarships to needy students pursuing higher education.

The CREDAI Institute of Real Estate Research and Professional Studies, to be set up in Ahmedabad, would impart world-class education and research in real estate related subjects, the association said in a statement.

The institute would be functional from June, 2014. It will have tie-ups and affiliations with top global institutes.

CREDAI President Lalit Kumar Jain said that Jaxay Shah, Vice President of CREDAI, has donated land for the Institute.

Kumar Urban development, headed by Lalit Jain, would give Rs one crore for the institute's building. Several other leading developers too expressed their support.

Besides this institute, CREDAI announced a scholarship scheme to students pursuing full-time degree/ post-graduate degree courses in civil engineering or management degrees related to realty sector in the All India Council of Technical Education (AICTE) recognised institutes.

The scholarship will be provided to economically under privileged, but academically bright students. CREDAI will fund the initial contribution for obtaining educational loans.

CREDAI said that it has taken up the education initiative to encourage youth to play a major role in the nation building activities.

Real Estate and construction industries support over 250 other industries and contribute 11 percent to the GDP, thus playing a pivotal role in the nation?s economic development.

"It is the largest employer after agriculture. Hence, CREDAI has taken up the initiative to enhance skill sets and promote talent," Jain said. 

Source: zeenews.india.com

Property show in Coimbatore

The fourth edition of ‘FAIRPRO’, the property exhibition organised by Confederation of Real Estate Developers’ Association of India (CREDAI), Coimbatore, will be held from August 17 to 19 here.

The exhibition, to be organised at the CODISSIA Trade Fair Complex, will showcase properties of 30 member developers of CREDAI and housing finance companies will assist home buyers in selecting appropriate home loan options. The properties on display are expected to be in the price range of Rs 25 lakh to Rs 2.5 crore.

According to an association release, the FAIRPRO 2011 attracted more than 13,000 visitors and transactions worth more than Rs 50 crore took place.

Source: www.thehindubusinessline.com

Credai opposes VAT on flats sold in 2006-’10

The Confederation of Real Estate Developers’ Association of India (Credai), Pune Metro, has opposed state government’s order asking them to pay value added tax (VAT) on flats that they sold between June 2006 and March 2010. The real-estate body has asked for extending the deadline of August 31 to pay the retrospective tax.

Credai director-general D K Abhyankar said that after April 1, 2010 the developers have been paying 1 per cent VAT on property sale under the composite scheme. However, he said that Credai has already approached Supreme Court and the petition related to the payment of VAT is pending before the court. “A petition has already been filed in the apex court, but the government has asked us to clear VAT by August 30. We have requested the finance department to extend the deadline. We have urged that the deadline be extended by at least three months as the order has been issued in hurry,” he said.

Abhyankar said total VAT that would be paid by developers has not been worked out yet, but the number of flats that were sold during the period in the city is over 1.5 lakh.

Credai said the real-estate industry is already battling issues of delay in clearances in real-estate projects and the new order has only come as a dampener. Abhyankar said the actual rate that will be applicable for the payment of VAT will be worked out by the industry body in consultation with the government.

Source: www.indianexpress.com

Mangalore to host CREDAI meet on Aug 25

The second State-level conference of CREDAI-Karnataka will be held in Mangalore on August 25.

Addressing presspersons here on Wednesday, Mr P.M.A. Razak, President of CREDAI (Confederation of Real Estate Developers’ Associations of India), Mangalore chapter, said the event would focus on the theme ‘Homes for all’.

CREDAI was keen to provide the common man affordable housing based on the green housing concept in accordance with Government policies. The rising cost of building materials had led to escalation in apartment costs across the country. In such a situation, CREDAI was exploring ways to reduce cost without sacrificing the quality of apartments, he said.

The meet would have panel discussions on affordable housing and ECBC (Environmental Conservation Building Code) norms, among others. It would also discuss skill development in the construction sector. “There is a need to convert unskilled labour into skilled labour and to improve efficiency in the construction sector,” he said.

Given the undue delay in clearance of many projects, he said the conference would focus on the issue of single-window clearance.

Mr Razak said builders from Karnataka and the neighbouring States were expected to attend the convention.

Mr Jagadish Shettar, Chief Minister of Karnataka, would inaugurate the convention on August 25, he said.

vinayak.aj@thehindu.co.in

Source: www.thehindubusinessline.com

We will reach out to both end-users and builders

CREDAI TEAM: President Sandeep Mehta,
MD, Jain Housing and Constructions.

CREDAI TEAM: Secretary Suresh Krishna,
MD, Isha Homes.

CREDAI TEAM: Treasurer W.S. Habib,
MD, Ramky Wavoo Developers.

CREDAI TEAM: Vice President Ajit Chordia,
MD, Khivraj Tech Park.

CREDAI TEAM: Vice President S.C.M. Jamaldeen,
 Managing Partner, M/S Jamals

Sandeep Mehta, newly elected President of CREDAI’s Tamil Nadu Chapter, talks to Rini Mukkath about future plans and the role the organisation can play

What has the Confederation of Real Estate Developers’ Associations of India (CREDAI) Tamil Nadu planned for 2012?

Real estate plays a vital role in the economy and it needs to be harnessed. CREDAI must build its status in the public domain and reach out to both end-users and builders to boost the industry. We will be working closely with the Ministry of Housing and Urban Development to support them in doing up parks, pavements and even to plan roadways better. The government lacks expertise and, even though they have started hiring foreign agencies, the execution gets stalled. We will enter as a third party and support the government with our plans and ideas.

What is the level of interaction between the CMDA and CREDAI?

Anything that is passed by the CMDA is sent to us for approval. We review the various Bills and Acts and give our analysis. The recently enacted Registration Act was closely monitored by us, and the new guidelines were reviewed by our board of experts.

The delay in building approvals this year is costing both end-users and builders. How can CREDAI help?

Over the last decade, our members are suffering from want of approvals. Our internal panel will scrutinise the files that have to be submitted and certify the plans before they are put on the table of the authorities. We realise that the real estate community needs a permanent solution to this problem and our long-term goal is to create a single-window clearance system. CREDAI wants to not only help builders to sell better but also help end-users to have a hassle-free buying experience.

How does CREDAI plan to educate and help end-users?

Informing the public about how approvals happen and which areas are forbidden from building is going to be done through regular interactions with the media. No matter how much buyers look for information online and take advice from professionals, they always lack the right kind of information. The Archaeological Survey of India has marked certain areas as restricted for building and sometimes the buyers are unaware of this. CREDAI’s data centre will update itself with such information and help the public.


Source: www.thehindu.com

CREDAI chief Lalitkumar Jain takes on black money scourge

Developer Lalitkumar Jain, who earned the sobriquet 'Green man of Pune' for his eco-friendly initiatives, is on a mission yet again. This time, he is taking up cudgels against black money - one of the worst problems plaguing the real estate sector - but against the very support system of the industry.

"The sector (real estate) is used as a medium to park black money. My point is why this sector should bear the brunt when we are not the beneficiaries?" Jain, chief of the Confederation of Real Estate Developers' Associations of India (CREDAI), said in an interview.

Under the existing practice, buyers pay a part of the total payment (varying from deal to deal) to builders in cash without receipts or any other form of acknowledgements. CREDAI and its members have decided to do away with all black money transactions in the sector, he added.

"We don't want any money beyond Rs 20 in cash, not even Rs 100. Transparency is what the real estate sector needs now," said the civil engineer-turned multi-project developer, who made representations, through his association, to the PM requesting his intervention.

According to Jain, who had been associated with CREDAI from its inception, builders are accepting black money to increase cash inflow. A single-window approval system with faster sanctioning of proposals will help in reducing the influence of black money, he said.

Jain, who started his career at the age of 17 as a supervisor with a Pune firm, is also working for developers and their stakeholders, the customers.

As president of the industry, Jain is seeking reforms on land regulations, tax and legal issues that needed to be addresses on a warfooting. "Delay in approvals, which delays projects, is still the single- biggest issue," he said, adding that a real estate developer needs to get at least 40 approvals for every project.

A connoisseur of Indian classical music, especially of Ustad Bade Ghulam Ali Khan and Kishori Amonkar, Jain through his company, Kumar Urban development Ltd (KUL), donates about 10,000 saplings every year to civic bodies in Pune city.

KUL, which has constructed residential complexes, malls, IT parks and SEZs, had also planned for an initial public offering, which put on hold due to the sluggish market conditions.

Source:indiatoday.intoday.in

The building bricks

URBANSCAPE: Realty industry suggests reform measures to cut down on time and chance for corruption

Upset at being largely blamed for the prevalence of black money in the country, the Confederation of Real Estate Developer's Associations of India (CREDAI) has called for unleashing of immediate reforms governing the sector to put an end to “license raj” and tackle the menace of illegal transactions in realty deals.

CREDAI chairman, Lalit Kumar Jain said the real estate developer community has become a favourite punching bag whenever there is talk about the black money curse. ``We hate the system that labels us as crooks, cheats and breeders of black money. But the matter of fact is that the various bottlenecks at the government level, both at the Centre and in several States, are equally responsible for this menace.

He said the real estate sector is still governed by controls and the ‘license raj' regime. The developers have to get over 40 clearances which lead to human interaction with over 150 officials at various stages. “Any delay at any stage obviously gives rise to greasing of palms as the developer is always anxious to finish his project in time and avoid delays. As you all know, real estate is a highly capital intensive industry and any delays would only add to the interest burden for the developer who scrupulously tries to avoid it since the increased costs would lead to a cut in margins and rise in the cost for the customer,” Mr. Jain explained.

Mr. Jain said the real problem lay with land transactions, corruption related approvals and license process, power in the hands of officials who can threaten to stop work, the political system and above all the taxation system. A McKinsey report to the Union Government on cost of approval had clearly pointed out that the costs incurred on account of various approvals could constitute anything up to 40 per cent of the sale value.

Mr. Jain said restricted land use and continued pressure on land availability is also one of the root causes of high costs of inputs and the resultant sale price. “Like any prudent businessman, we are also here to make profits, otherwise it simply does not make sense for us to be in the business,” he remarked.

CREDAI suggested single window system for project clearances to cut down time and chance for corruption. It suggested reforms in four key areas that impact the real estate - administrative land, tax and banking. ``There is no clarity on land policy and there is absolutely no control over cost of funding and other inputs. With rapid urbanisation, the nation witnessing an ever increasing demand-supply mismatch and we developers are being blamed for an artificial shortage of homes. CREDAI has suggested Special Housing Zones on lines of SEZ.

Source: www.thehindu.com

CREDAI seeks PM intervention to curb black money in realty biz

New Delhi: CREDAI, the apex body for real estate developers, on Thursday sought Prime Minister's intervention to bring reforms for curbing black money in the realty sector.

The Confederation of Real Estate Developers Association of India (CREDAI) suggested reforms in four key areas that impact the real estate - administrative, land, tax and banking.

"The economic reforms initiated by Manmohan Singh as the Finance Minister over 20 years ago have seen the end of the Licence Raj, but the real estate sector is still governed by controls and increased controls," CREDAI President Mr Lalit Kumar Jain said in a statement.

He regretted that industry's demand for quick approvals of project through single-window clearnce system has received poor response from authorities like the Environment Ministry.

"We are victims of the system, not the beneficiaries! We hate this system which makes us look ugly. We curse every person who exploits us to give us a legitimate permission which we deserve instantly and without any illegitimate demand," Jain observed.

CREDAI has been pointing out that there are over 40 clearances that a developer is supposed to get which leads to human interaction with over 150 officials at various stages.

"Any delay at any stage obviously gives rise to 'greasing of palms' as the developer is always anxious to finish his project in time and avoid delays," Jain said, while appealing to the Prime Minister to urgently call for discussions on comprehensive reforms for realty sector.

Commenting on the recent White Paper on Black Money, CREDAI said: "It is a good attempt at focusing the nation?s attention on the issue, but it unfortunately picks on the real estate and deals with just a couple of issues like the Stamp Duty as though that is the only cause of the problem".

Jain lamented that the developer community has become a favourite punching bag for many whenever they talk about the national curse. "We too hate the system that labels us as crooks, cheats and breeders of black money," he said.



Source:zeenews.india.com

Real estate developers plan strike in October

MANGALORE, MAY 19: Developers in the country may go on strike in October if the Government does not listen to their demands. The Chairman of the Mangalore chapter of CREDAI (Confederation of Real Estate Developers’ Association of India), Mr P.M.A. Razak, said this at the inauguration of a property fair in Mangalore on Saturday.

Mr Razak said they want the Government to resolve issues related to delay in sanctioning of projects, and to control the increase in price of cement and steel in the country.

Mr Razak said there has been an unnecessary delay of two-three years in the sanctioning of most projects in the country. In contrast, projects are sanctioned within a few days in many developing countries.

Delays in sanctioning would lead to the cost escalation of projects. He said nearly 45 per cent of cost escalations were on account of delays in sanctioning.

Referring to the increase in the price of steel and cement, he said the Government should set up a regulatory authority to control the price of these resources.

The CREDAI would approach the Prime Minister in June, seeking his intervention to solve various problems of the construction industry in the country.

CREDAI has tentatively decided to go on strike in October, if their demands are not met, he said.

vinayakaj@thehindu.co.in

Source:www.thehindubusinessline.com