Corruption in Real Estate - Addl Inputs
Real Estate and Land continues to be a top area of corruption. Businesses/Politicians/Govt Officials/Individuals get land allotted to them under various schemes and then get land use changed, sell land as part of a shell company and a lot more. Some time back, you had given your inputs on issues, root causes and solutions in regards to Corruption in Real Estate sector of India. Kindly review them and share any additional specific issues or solutions that you may have.
We will soon be putting together some information for broader awareness and actions.
Transparency International India
Corruption in Real Estate – Solutions
1. The nexus between builders and politicians should be broken by punishing them heavily with no room for bails
2. Politicians found involved illegally with the builders should be tried for perjury
3. A committee should be set to re-check all the land allotments done from January 2015 onwards to catch irregularities
4. Surprise checks should be conducted on buildings who have received safety certificates in the last 5 years
5. If the buildings are not found as per the standards, their licences should be suspended
6. The builders should be instructed to make the buyer contract more transparent and easy to understand
7. If the builder is found to have not delivered the property as per the promise, then the fast track courts should direct them to pay back that much money with interest
8. Builders found forcing the consumers to pay in cash should be penalized heavily
9. All the processes and formalities in the registrar’s office should be digitalized
10. The land registration process should be made online. This would reduce human interaction and bribery
11. Cash transactions should be made completely illegal in real estate
12. The Government regulation on real estate should be made transparent
13. Government should simplify " laws relating to Building & other construction workers Acts" " Contract Labour regulation Act"
14. The State Government should fix the market rate and there should not be any kind of government rate which differs and leads to corruption
15. All sales should be based on carpet area with no hidden clauses
16. For delayed constructions, the builders should pay interest at the same rate as they charge from buyers for their delayed payments.
Corruption in Real Estate – Root Causes
1. Politicians use their power and influence to make illegal money
2. Builders support the politicians financially in their campaigns
3. Instead of spending huge amounts in making the buildings safe, the builders spend a small amount to bribe the officials to get the certificates
4. Builders try to extort as much money as possible from the needy buyers
5. Needy buyers get fooled by the builders through fake paper work
6. The Government systems lack technological upgrades
7. There is too much human interaction with the departments which allows room for bribery
8. Cash transactions are still legal in real estate business
9. The Government regulations on real estate are opaque
10. Many transactions are done through hawala money
11. The corrupt are never caught and penalised.
Corruption in Real Estate - Key Issues
1. Politicians take bribes from the builders to get them land allotted
2. Huge bribes are paid to change land use or to get permissions to construct residential or commercial buildings
3. Builders bribe the officials to get the safety certificates
4. In the name of charging for super built area, every buyer is forced to pay considerable amount of money in excess of what actually is the cost
5. Buyers are required in most cases to come up with cash/black money to buy real estate
6. In some cases the housing complexes are built on land with dubious papers/forged papers in connivance with the officials/political power
7. Several housing plots are illegally occupied and sold again with fake photo and papers
8. In 90%+ cases one has to pay bribes at the property registrar’s office
9. Government/Public Land is encroached bribing the entire system and muscle power and then sold at premium price. more
We will soon be putting together some information for broader awareness and actions.
Transparency International India
Corruption in Real Estate – Solutions
1. The nexus between builders and politicians should be broken by punishing them heavily with no room for bails
2. Politicians found involved illegally with the builders should be tried for perjury
3. A committee should be set to re-check all the land allotments done from January 2015 onwards to catch irregularities
4. Surprise checks should be conducted on buildings who have received safety certificates in the last 5 years
5. If the buildings are not found as per the standards, their licences should be suspended
6. The builders should be instructed to make the buyer contract more transparent and easy to understand
7. If the builder is found to have not delivered the property as per the promise, then the fast track courts should direct them to pay back that much money with interest
8. Builders found forcing the consumers to pay in cash should be penalized heavily
9. All the processes and formalities in the registrar’s office should be digitalized
10. The land registration process should be made online. This would reduce human interaction and bribery
11. Cash transactions should be made completely illegal in real estate
12. The Government regulation on real estate should be made transparent
13. Government should simplify " laws relating to Building & other construction workers Acts" " Contract Labour regulation Act"
14. The State Government should fix the market rate and there should not be any kind of government rate which differs and leads to corruption
15. All sales should be based on carpet area with no hidden clauses
16. For delayed constructions, the builders should pay interest at the same rate as they charge from buyers for their delayed payments.
Corruption in Real Estate – Root Causes
1. Politicians use their power and influence to make illegal money
2. Builders support the politicians financially in their campaigns
3. Instead of spending huge amounts in making the buildings safe, the builders spend a small amount to bribe the officials to get the certificates
4. Builders try to extort as much money as possible from the needy buyers
5. Needy buyers get fooled by the builders through fake paper work
6. The Government systems lack technological upgrades
7. There is too much human interaction with the departments which allows room for bribery
8. Cash transactions are still legal in real estate business
9. The Government regulations on real estate are opaque
10. Many transactions are done through hawala money
11. The corrupt are never caught and penalised.
Corruption in Real Estate - Key Issues
1. Politicians take bribes from the builders to get them land allotted
2. Huge bribes are paid to change land use or to get permissions to construct residential or commercial buildings
3. Builders bribe the officials to get the safety certificates
4. In the name of charging for super built area, every buyer is forced to pay considerable amount of money in excess of what actually is the cost
5. Buyers are required in most cases to come up with cash/black money to buy real estate
6. In some cases the housing complexes are built on land with dubious papers/forged papers in connivance with the officials/political power
7. Several housing plots are illegally occupied and sold again with fake photo and papers
8. In 90%+ cases one has to pay bribes at the property registrar’s office
9. Government/Public Land is encroached bribing the entire system and muscle power and then sold at premium price. more
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The registering authority must have the responsibility of the real estate registrations registered with them. They are just collecting fee without responsibility. This is giving scope to the cheaters. They may take extra time but the registration authority must have responsibility They must register after confirming all the information relevant. Recently some real estate agent was telling that the registering authority came to know that particular land is assigned land at the time changing the hand from to 9th to 10th. During the earlier 9 registrations they had not objected . But that was a assigned land prior the tranction between hand 1 and hand 2. more
Aug 21
There should be simultaneous raids of all revenue officials as well as the agents who facilitate corruption on the pretext of offering service for paper work. Not one fellow should be spared. They are crooks of the highest order. more
Jul 12
Online appointments, all the fee by dd or cheque, a self sufficient govt offices functioning on a token system and one party at a time. CCTV cameras to be monitored and all the payment on digital mode. All the required froms and may I help you counter with the knowledgable person to guide the people and with the specified time limits for all transaction and queries. If not the head should explain why is the delay. A daily report of the daily registration with the status of all the transaction along with explanations. more
Jul 12
Make all submissions of builders, including plans, ON-LINE. Let your corrupt officers reply online without allowing a personal meeting. Why officers should meet builders ? For corruption, boy. more
Jul 12
