Corruption in Real Estate - Inputs on Issues

Real Estate is one sector ridden with corrupt practices. From land purchase to registrations and from permissions to build to selling constructed property, there are bribes involved at every step.

Please share all the various corruption issues you have faced in Real Estate sector.

If you have a significant issue/organized corruption/collusion, you are welcome to submit a new post (anonymous, if it is sensitive) and create awareness about it.

Based on community response and potential impact if addressed, we may take it up with investigation agencies.

We look forward to your inputs! more

Helpful Together Against Corruption Sep 17

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Ranjit Biswas

There is a practice of constructing residential and commercial houses/buildings by the State Housing Boards and the city level Development Authorities and sell them in open market. The quality of construction of such houses/premises used to be below standard though they recover prices from the purchasers at market price. This happens in collusion with the employees/officials of the boards/development authorities and the contractors. In every state the rates of registration charges of immovable properties including stamp duties are on a very high side and irrelevant, which encourages the builders and the purchasers for corrupt practices. A certain portion of the price of a property is taken by the builders in black and without issuing any receipts to the purchasers enabling them to hide their actual amount of profit and avoiding payment of income taxes and other taxes, where applicable. It is the practice in every district to fix up government rates of landed properties in different areas of a city by the District Collectors for the purpose of paying registration fees by the purchasers. Most of the times these rates are irrelevant and on much higher sides of the actual prevalent rates. These rates are revised upwards every year encouraging corruption. Getting a housing plan passed by the municipal authorities in an uphill task unless one give bribe to the concerned employees/officials. The builders capture government/nazul lands, get their plans illegally passed, build house/premises and sell out in collusion with the government officials. more

Jun 19

Narayan Wadgaonkar

I have experienced that the corruption starts from the purchasing of land . Some business men come to well in advance regarding area going to be developed . They purchase these land at very cheaper rate from the owners . The town planning department leaks such information . Owner of land never gets N.A . permission . He has to get it done through agent who has setting with this department . Even after getting the N.A. done from the agent he cannot go for development because you will not get the permission for construction by raging so many queries that you will get fade up . Then slowly you will be advised to sell to some builders . The builders have settings with the department . This is how the cost of real estate goes up . more

Jun 19

Imran Ahmad

The construction linked payment schedule followed for residential complexes, leaves very little money to be given during possession and therefore the builders tend to take it easy after completing the slabs. It needs to be ensured that substantial amount is kept pending at the hand of the buyer to ensure that the builders / developers are interested to complete the complexes including amenities as early as possible. more

Jun 16

Parameswarankutty Panicker

For every type of building and for every zones, the maximum built up area allowed, the minimum side margins to be left out, maximum stories allowed etc should be published by every regulator. If the plan is in conformity with them, sanction should be given with in a week. As of now the officials freely mix-up rules meant for different type of buildings just to make it complicated for people. What I am saying is that the rule book should be made more explicit and simple. more

Jun 15

Varun Nayak

A comission should specially be setup in this sector which should ofcourse have people who themselves are not corrupted more

Jun 15

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