How Naidu's US Experience Set The Tone For Realty Regulator
Following a long wait, the Real Estate (Regulation and Development) Bill, 2013, became a law on Thursday after being passed by the Rajya Sabha. The development, coming after long discussions and coordination among various parties and stakeholders, made March 10, 2016, in Union Urban Development Minister M Venkaiah Naidu's words, “a historic day”.
Known for being an upfront speaker, Naidu was at his oratory best on Thursday as he gave a perspective to the legislation by stating an anecdote from his first visit to the United States of America.
The minister recalled that his flight to Los Angeles from Washington was delayed due to some technical glitch. The airline authorities offered him a $7 coupon to buy snacks; he was elated at the gesture. Later, when he boarded his flight, he received an apology letter along with a $25 cheque as compensation from the airline. “My impression of America went up manifold,” Naidu said.
However, when he narrated the incident to an American friend, Naidu recalled, he was surprised at his friend's response. His friend told him that the airline had deceived him; if a flight was delayed in America, people could go to the attorney and file for damages.
The US has a strict consumer law, under which an aggrieved party can claim full compensation. The airline had been able to get away with a small payment of $25 and avoided a heavier payout, Naidu said in the Rajya Sabha on Thursday.
He compared the scenario in India by saying, “If we have delays, we only hear the nonchalant response, 'Vilamb ke liye khed hai' (We regret for the delay) .” However, the US experience left the minister wondering when India would come up with such consumer-empowering laws.
Naidu called the new real estate law a big leap in the direction of further empowering consumers. “In the last five years, about 17,526 projects have been launched in 27 cities. The delay in the implementation of these housing projects due to an absence of transparency and accountability has been a bane of this sector. Its credibility has come into question. Delays have resulted in huge time and cost overruns, resulting in increased cost of houses,” said Naidu.
“The consumer is the king, and the developer is the queen, and there shall be a happy marriage… both shall live happily ever after,” the minister said, hoping the new legislation would be a win-win for all stakeholders.