6 reasons why underwriting is bad for real estate sector in India

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

What is underwriting in real estate and why do real estate developers go for it?

Sumit was looking to purchase a property in Noida and he missed out on the opportunity to book a flat with reputed developer last time because within 2 days of the launch, the project was sold out. He had made up his mind not to miss such opportunities next time. However, even after keeping an eye on new project launches, he missed out again and now the only option left was to book the apartment with channel partners, underwriters, or brokers.

Why does this happen? He questioned…and even wondered…”I read an article last time, and it said…real estate demand is dropping”. How come, these new projects are sold out within a day or two of their launch??

The reason behind the selling of these new real estate projects in a day or two is not the actual demand but artificial demand. Real estate developers use the services of their nexus of brokers and financiers who underwrite these projects.

Real Estate project underwriting in its broader term means sharing the risk of the developer. Brokers or financing houses underwrite the real estate project, which means they have taken on the risk of distributing/selling the project. Should they not be able to find enough investors or customers, they will have to hold some stock themselves. Underwriters make their income from the price difference between the price they pay to the real estate developer and what they collect from investors or from broker-dealers who buy portions of the offering.

With the help of this nexus, developers start making claims that their projects are sold out. With underwriting, developers are able to create a situation wherein they let prospective buyer believe that there is demand for the project and that they should buy the property now or else the prices will go up shortly. And this normally creates a herd mentality among end-users and they have no other option but to buy the property.


Why underwriting is not good for real estate sector in India

• Artificial demand

The demand thus created by the nexus of builders and underwriters clearly sends the signals to the market that “All is well” with realty sector and demand is robust. However, for a given city the actual demand supply equilibrium can be understood by studying and analyzing the capital value appreciation and rental yields. If demand is robust, it should reflect in the rental yields as well. However, what we see in most Indian cities is the fact that rentals have not kept pace with the capital value appreciation. The artificial demand created by the builder-underwriter nexus keeps the capital value of housing stock unjustifiably high.

• Prices keep on moving up despite the sluggish market economy and demand

We keep reading from various leading research agencies about the amount of unsold stock lying with the developers and how it has increased over the last quarter or year. There is hope that prices might come down to reasonable level. And all of us sit on the fence hoping that prices are going to come down, but what happens is actually opposite. Prices are always going up. Demand or no demand, prices in real estate sector in India move only in one direction and that is up. There is never a correction. Why? Well, coupled with the limited launch of new supply, holding up of existing inventory keep the prices firm. Finally, the buyer gives in and the cycle continues as usual.

• Seller’s market

Housing is a basic need where one dreams of having a house with certain features and specifications. In reality, buyers are forced to buy whatever is available at prevailing market prices. There seems to be no choice whatsoever for buyer to buy a piece of land and construct his own property due to high prices.

• Non preferential allotment

There might be people who might have contacted the developer early and would have thought of booking an apartment at their desired floor with best available view. However, this wishful thought may not come true due to underwriting of the project as it may be blocked by underwriters in bulk bookings.

• Housing is treated as an investment class rather than a basic need

People or businesses with deep pocket and unaccounted income invest in some of these projects to park their money. There are instances when one individual or business house owns multiple residential properties. Whereas the land allotted by civic authority to builders should have served the purpose of creating housing supply for the needy at justifiable price, what we see is the mad rush by people to own multiple properties. And this builder-underwriter nexus serves this well by allowing cash component in property dealings.

• Black money

A builder offloads its stock to underwriters and then an underwriter sells the stock to end-users or investors. Based on the artificial demand created, builder keeps on increasing the prices periodically (monthly or quarterly). The underwriter then sells the property at lower value than the current builder price. The premium charged by the underwriter is usually paid in cash by the investors. And this leads to a circle wherein an investor with unaccounted income invests in property and the cash amount received by the underwriter is again pushed back into buying of another housing stock.


Are there any solutions to this builder-underwriter problem?

Yes, there is a solution. Whenever a real estate developer sells, it should be made mandatory by law that the buyer information will be made public. By having the buyer information, not only will this lead to actual demand but may also put a curb on entering of black money into real estate sector. But, will the authorities pay any attention to this? We don’t know and this is where the Real estate regulatory bill has also failed. Read more on real estate regulatory bill in the next column.

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How will Real Estate Regulatory Bill (RERA) help home buyers in India?

Real Estate Regulatory Bill (RERA) has been passed and is now being implemented at state levels. How will Real Estate Regulatory Bill (RERA) help home buyers in India? Here is quick look:

The Real Impact of the RERA Act

It’s been over four months since the Real Estate Regulation Act (RERA) came into effect in India. While the much-welcome move from the Indian parliament came as a boon for home-buyers in the country, there were (and still are) a lot of teething issues for developers and builders and the real-estate sector as a whole.

As is known, the RERA Act covers all projects that were still being executed and hadn’t received a Completion Certificate as on the date of commencement of RERA Act, that is May 1, 2017. Thus, many under-construction properties have come under the ambit of the RERA Act. All of these projects had to be registered with the housing regulatory authority, and the developers or builders concerned had to provide regular updates on the approvals at various levels. All these registered properties have to follow the rules of RERA.

• The Much-Needed Respite

One of the highlights in the RERA guidelines is that any real-estate property, be it a luxury apartment in OMR Chennai or a simple 2BHK in a suburban location of Mumbai, will be priced on the basis of the carpet area, and not the super built-up area. As per a report in The Economic Times, BMR & Associates LLP’s Manoj N Kumar, who is a Partner in Direct Tax, has clarified that the carpet area is 30–35% lesser than the super built-up area of a project. The sale of projects on a carpet-area basis can lead to a significant increase in the per-square-foot price of the project, he adds.

• The WIP Bane

The newly introduced rules under the RERA Act bring about a major transformation in the way real-estate dealings have been taking place in India. Switching to the new rules was expected to take some time, especially in the case of under-construction properties that have already seen a lot of paperwork. And, as can be seen, the shifting of gears has slowed down the growth of the sector in many states. The properties that were under construction at the cusp of the switch to RERA are bearing the worst brunt as their regularization and documentation had to be changed midway. And, until these properties get completed, their respective builders and developers are not willing to start off with new projects. This means, there is a lot of pressure on them to complete the ongoing projects and sell them, failing which there will be a pile-up of unsold inventory.

• The DeMon-RERA Impact

Experts express unison in the opinion that the demonetization drive by the Indian government in November 2016 was a blow to the real-estate sector because of the unprecedented and heavy cash crunch that made an appearance without any warning. Add to that, the RERA Act has forced builders and developers to mend their ways and set things straight, and bring about transparency at every level.

The back-to-back moves by the Indian government have taken the businessmen in the sector by shock, and it is only natural that they will need time to ensure things are in order. Until then, the sector is expected to continue facing a slowdown. However, given the motive of RERA to ensure thorough regularization and accountability in real estate, it is believed that the sector will start looking up gradually and that the benefits of the Act will be here to stay.


This is a guest post by Dinesh Dhawde

How Will Real-estate Buyers Benefit From the RERA Act?

After over a year since the Real Estate Bill was presented in the Rajya Sabha, the Real Estate Regulatory Authority (RERA) Act is finally here. The much-awaited Act, which was implemented nationwide on May 1st this year, is aimed at bringing about the required accountability and transparency in the real-estate sector, which has so far been unregulated. Buyers across the nation, including those investing in expensive properties such as villas in Electronic City in Bangalore, are expected to be in the know of projects, right from the get-go.

A day before the implementation of the Act, M Venkaiah Naidu, Union Minister for Urban Development, Housing and Urban Poverty Alleviation, Information & Broadcasting, had tweeted, "#RERA promotes accountability, transparency & efficiency in the sector. Buyer set to be King. Promoter benefits from king’s confidence."

Here are a few benefits that buyers of real estate are expected to gain from the newly implemented RERA Act:

• The Act will regulate the development work of projects that were ongoing as on the date of commencement of the Act, that is May 1, 2017, and for which the Completion Certificate was not issued. Which means, all ongoing and upcoming real-estate projects will have to be compulsorily registered by the developers. And, the registrations will need to be done before the projects can be marketed.

• The term ‘carpet area’ has been given a clear meaning in the new Act. It states that the term covers usable spaces, including all areas covered by the internal walls—such as the kitchen and toilets—and excludes areas covered by the external walls—such as balconies and open terrace areas. And, buyers will need to pay for only the carpet area.

• Unlike earlier days when there was not much transparency in the development work undertaken by developers and promoters, under the new RERA Act, all project-related details, including layout, sanctioned FSI, and number of floors/wings/buildings will need to be shared with buyers.

• Quarterly updates on the development of the projects will need to be posted by the developer or promoter on the RERA site. The updates will concern the government approvals granted, overall status of the project, etc.

• In case the developer provides false information regarding the project or breaches any of the provisions of registration, he will be liable to pay up to 5% of the estimated cost of the project.

• Developers cannot take more than 10% of the project cost as advance without entering into a written agreement for sale.

• To prevent misuse of the money invested by real-estate buyers, developers and promoters will have to transfer 70% of the received money to an escrow account. This money will be withdrawn for covering construction and land costs, and that too after the necessary certificates are issued by the architect, engineer, or CA concerned, stating that the said repairs are imperative. This measure is aimed at curbing developers’ practice of using buyers’ money for a project other than the one for which the money was reserved.

• In case the developer does not hand over the possession of the property to the rightful allotted person, the latter can withdraw from the project and seek 100% refund of the amount paid, along with interest.

• Any structural repair costs in the property will be borne by the developer for five years, as against two years earlier.

• Non-compliance with the RERA Act will lead to up to three years of imprisonment or a fine of up to 10% of the estimated cost of the project, or both.

This is a guest post by Dinesh Dawde.

Real estate Regulatory bill and the path forward

The real estate market in India has witnessed a hulking transformation in regards to development in the recent times. Many policies and schemes have been introduced by the Indian government to improve the condition of the real estate sector. The latest development is undoubtedly the implementation of RERA in each state. This has led the market experts to maintain optimism that the real estate market's reputation will enhance.

One of the industry experts, Mr.Surendra Hiranandani believes that the year 2016 will see the buyer influencing the industry dynamics. He says “The real estate sector has witnessed a mixed bag of trends in FY 2015. Tough lending norms from banks and financial institutions, project delays, and cost escalations have proven a dampener. However, Easing of FDI norms, housing for all, steps towards setting up of a regulatory body, focus on smart cities development, softening of interest rates, considerable progress towards implementing REIT have certainly helped in building positive sentiments in the real estate industry”. He further added, "Given the recent policy changes, FY 2016 would primarily be a buyer-driven market, with buyer strongly influencing the industry dynamics. Builders with strong track record in terms of not only delivery but also maintaining excellence in quality and design will have an edge with the discerning buyer.

To build on the positive developments in real estate industry, what would be critical is industry friendly policies such as single window clearance, easy project finance options for developers and passing of RBI rate cut benefits by banks to home buyers."  

Another industry guru claims that RERA will be instrumental in revolutionizing the way the properties are built, sold, and bought. The prime objective of this bill is to establish a regulatory body, which safeguards the interests of consumers. This regulatory body will be responsible for addressing the disputes of the buyer to maintain the reputation of the industry.

The primary benefit that the bill offers to the buyer is that it mandates the registration process for any real estate project with RERA. It is essential for all the agents, who are willing to sell any property, to register themselves with this authority. It also requires the revelation of all the details related to the registered deals like the land status, layout plan, details of varied approvals, and promoters. The bill aims to reinforce the pact between the builders and buyers and act as an accelerated court to resolve altercations. The bill also restricts the developer from changing the plan without the consent of at least two-third of the buyers.

The bill is introduced to keep a watch on the builders and sellers. It gives an arduous responsibility to the builder of registering and disclosing information on a regular basis through a portal, which is maintained by RERA.

The bill also mandates the registration of brokers with the State regulatory authority, which was a much-needed step taken by the government. This will give the real estate brokerage sector more transparency. Also, working in an organized manner will make this sector all the more profitable.

Growth in the real estate sector has a lot to do with the broker’s skills and his/her ability to cater to the needs of the customer. Training will play an important role in the industry to acquire accomplished brokers as opposed to amateurs.

These are some of the challenges of the real estate bill 2016. Apart from these, there are other shortcomings of the bill that need to be covered by the future amendments. For instance, the bill is restricted to only buying and selling of properties and does not consider the problems the builders face when it comes to approval bottlenecks. Also, the need to keep 70% of the collection in an escrow account is likely to create problems for the builders with limited resources. Though this is a good move, there are chances of an unwanted price hike that would ultimately affect the end buyer.

This is a guest post by Deepak Yewle

Rahul Gandhi attacks Modi Government’s Real Estate Regulatory Bill. Is he right??

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

Real Estate Regulatory Authority Bill is facing tough resistance from the Congress Party. Congress Party Vice President has taken up the cause of middle class home buyers. Congress Party is of the view that the bill in its current state is anti-home-buyer and pro builder.

Last Saturday 2nd May 2015, about 200 home buyers who have grievances against builders met Mr. Rahul Gandhi at Congress Headquarters. The problems highlighted by home-buyers ranged from delay in deliveries of flats to shortchanging by the developers.

Congress opines that some amendments to their bill have been made which are pro-builders (Read here about Real Estate Regulatory Bill 2013 passed by Congress Government).

1. Definition of Carpet area has been changed. As per the bill passed by the Congress party, carpet area was ‘net usable area’ in an apartment, excluding the walls. Now, it has been amended and the ‘net usable area’ will be ‘rent-able area’ as defined in National Building Code 2005 or its later versions.
2. In the bill passed by Congress government, builders were not allowed to change the sanctioned plan once it was approved. Now it has been amended and minor changes are allowed by informing the buyer. 
3. In the bill passed by the Congress government, it was difficult to get extensions on project deadlines. However, it has been amended now and builder can seek extensions‘…due to force majeure or under such conditions as may be prescribed, which may include issue of completion certificate, approvals etc. without default on the part of promoter…’
4. In the bill passed by Congress government, a builder had to keep 70% of the money collected from home-buyers for the project. Now it has been amended to 50%.

Well, the points made by the Congress party are certainly in the interest of the home-buyers. However, we need to look at the whole picture comprising of Home-buyers, builders, and authorities.

Let’s take an analogy. A car comprises of fuel injection mechanism and exhaust mechanism. Fuel goes in the engine and burns and produces emissions. If fuel is of good quality and is mixed appropriately, then, we have a complete combustion and there are no toxic emissions.

As things stand today in real estate sector, we won’t get the solution if we focus only on the exhaust side. Because make no mistake, howsoever, we may try to fix the problem at the exhaust side, we won’t get the solution. There will always be toxic elements.

What we need to do is ‘fix the problem at the Fuel intake side’. And that means, taking into consideration all stakeholders including the builders, home-buyers, and authorities.

What are the ingredients for ‘Good quality of Fuel’ at the intake stage?

1. Make Land acquisition process smooth and transparent.
2. Digitize land records in order to eliminate title disputes.
3. Single window clearances for realty projects. As things stand today, a developer has to take 40-60 approvals depending on the state. This whole process of taking approvals delays the project and increases the cost. By some estimates, project cost will come down by 20% if we have a single window clearance mechanism in place.
4. Independence agencies to inspect the project during construction phase in order to make sure that project is being constructed as per the ‘National Building Code’.

Having the right Fuel at the intake stage will make sure that construction of the project is smooth and on time. There won’t be any discrepancies.

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It’s all about perception…isn’t it? And how is real estate sector in India perceived? Can the perception be changed? Let’s make it a New Year resolution :)

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

Good bye 2013 and welcome 2014, Happy New Year to each and everyone out there. Last year was tough for realty sector in India with GDP slowing down, high inflation and interest rates, and lack of demand from end-users. Will 2014 be different? Yes, it can be. However, the perception towards real estate sector needs to change and all the participants have to do their tiny bit in bringing out the positive image for the sector.

Current perception towards real estate sector in India:
Well, what is perception? It’s nothing but how people from outside view the sector. And how do they view it? Just talk to any common man and one would get the answer. The sector is perceived to be entrenched in corruption, black money, political maneuvering, builder – politicians nexus, etc. If one were to draw a sketch of the real estate sector on people’s perception, this is how it will appear:

The perception is that builders, politicians, and bureaucrats are working for each other when it comes to realty sector. This nexus is so strong that, policies are made, tweaked to favor the rich and powerful builders. Look at what happened at Campa Cola compound in Mumbai. The project was approved in 1980s by the BMC. Builder not only constructed the towers as per the approved plan but also illegally constructed some additional floors. Now, who would believe that these illegal floors were constructed without the knowledge of BMC or some local politicians? And now citizens are facing the heat. Doesn’t the picture above clearly highlight the situation in Campa Cola Compound of Mumbai?

Let’s examine the role of each stakeholder in the real estate sector closely:

• Town planning department or the authorized government agencies:

The department is armed with civil services officials with foresight to develop the city and plan for increased urbanization. New areas are demarcated for future residential, industrial, and recreational growth within the city. The process of demarcating land, allocation it to developers, tax collection, etc. is perceived to be inefficient and corrupt. We as citizens have no idea on what basis or methodology these areas are demarcated. Real estate project approval process is so cumbersome and opaque that there is no way out but to bribe the officials to obtain project approvals on time. And therefore, what we get is increased cost of property and unorganized real estate development.

Our team members have been visiting the new upcoming areas in Delhi NCR region. Real estate development in these areas has been taking place for almost 8-9 years and all we found is ghost cities. The infrastructure including electricity, water, sewage, roads, waste management is nowhere to be seen and yet we find plethora of high-rise development of brick and mortar. Some of these developments are self-sustainable. One can imagine the cost of living in these self-sustainable townships. More importantly, what will happen to unauthorized slums in the region? How those living in slums will be rehabilitated? Or will urban class who has tasted global standards live in conjunction with slum dwellers? There seems to be no answer.

To our question of who will live in those new buildings? Many builders, brokers, and investors would respond by saying that there is such a dearth of housing in the country that customers would lap up whatever is offered to them.

• Real estate developers:

With the planning and foresight of government officials, builders would enter the fray and acquire land for residential, industrial, or recreational purposes. There is strong perception that if builders are loaded with sufficient funds, there is no way in this world that they can be stopped from developing those ghost towns. Market research, planning, and concrete data are all fancy words for builders with deep pockets. To say that there is an utmost disrespect for planning & research would again be an understatement. Promoted as world-class real estate, there is perception that quality of construction is compromised in most of the final product delivered to the customer. The builder's focus on maximizing the profit often results in squeezing of the room-sizes and cut down on the open areas.

The question to be asked is how it is sustainable for builders to develop these ghost towns. Well, when party is on, the credit is available on cheap rates and there is always this heavy component of black money entering into real estate sector. However, when credit availability becomes tight and there is supervision on black money component, things start to change. This is what seems to be happening today and there seems to be no respite for builders from huge debt levels, customers’ lack of interest, and high rate of credit availability.

Will the bubble burst? Well, as long as entering of black money into the sector is not prohibited or controlled, this can continue although at slower pace than what we witnessed during 2003-2007.

• Media:

No one can deny the positive role of media in today’s times. However, there are occasions when media is perceived to be doing the services for politicians – builder’s nexus. As soon as the builders announce their 'world-class' projects with fancy western names, the media related to real estate development will go gung-ho about new development in the city and how it will shape the future of the city. Glorifying articles with questionable data related to infrastructure development will be published which forces customers/investors in believing about the merits of investing in these new ghost towns. Articles about roads, connectivity, metro projects, and industrial development will be published on a daily basis to lure people to invest in these new cities where no one lives for years before people actually start to move in. That movement of people however can take upward of 10 years is another matter. Maybe that’s the foresight of government officials or builders who don’t mind delaying the project since everything is in their favor and customers are at their mercy.

Case in point is the Noida extension fiasco in 2011-12, and promotion of upcoming airport on Yamuna expressway which was eventually canceled, etc.

• Investors:

Investors with unreported cash or income are the first ones to invest in these ghost towns. Where else can they park this hard earned money of theirs but for the real estate sector? What happens is the money which should have gone to the government in form of taxes would now sit in these ghost towns. The government with right intentions could have developed the necessary infrastructure with tax revenues which could have led to an organized economic growth in the region. But those are fairy tale stories and happen only in utopian societies.

• End users:

End users with modest income who have been sitting on the fence for all those years finally give in. They start buying for homes from investors in secondary market involving white and black transaction. Why white and black transaction? Well, to save on ridiculously high stamp duty and registration charges. And they just hope that situations like Campa Cola do not happen to them.

So, this is all about the existing perception. Can the perception be changed?

Yes, after all, we are all part of one common society and there is contribution from each one of us.


What can the Town Planning department or government agencies do to change the current perception?

1. There is already an effort being made by the government in bringing the real estate regulatory act. Although a small step, but this is a welcome step.
2. Land allocation process should be made transparent by auction mechanism or whatever the best possible alternative is.
3. Upcoming infrastructure in the city should be presented in the public domain credibly so that everyone has the information about the city development and therefore can participate in the process of real estate investment. The idea is to curb insider information practices wherein some investors connected to the policy makers make windfall profits and rest languish.
4. Project approval processes should be streamlined and made transparent. There is a wider belief among experts that by doing so, real estate costs can come down by whopping 20%.
5. Construction laws should be looked and analyzed on regular basis to improve the city development and curb illegal construction practices.

What can builders to change the current perception?

• Sell projects only when all the approvals have been obtained
• Clear distinction between carpet area and saleable area
• Clear deadline for project completion
• Third party supervision of construction quality

What can media do to change the current perception?

• Continue to report facts accurately about city development and upcoming infrastructure.
• Highlight the wrong practices by any of the participants in realty sector.

What can end-users do to change the current perception?

• Be an extrovert buyer. Ask questions before buying in a particular project
• Make payments in cheque and pay the taxes accurately.
• Thorough due-diligence
• Coming together with other buyers and forming a group

There is no denying that perception reflects reality. Even a single step of correction can go a long way in changing the reality of realty sector and change the current perception.

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How does the new Real Estate Regulatory Bill in India help me? What impact will this bill have on real estate sector in India? And what are its shortcomings...

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

In June 2013, Government of India brought in Real Estate Regulatory Bill to provide for a uniform regulatory environment, to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real estate sector and has been much awaited by all aspiring home buyers.

The Real Estate (Regulation and Development) Bill, 2013 is a pioneering initiative to protect the interest of consumers, to promote fair play in real estate transactions and to ensure timely execution of projects.

The Bill focuses on 3 principle parties namely, the real estate developer, the buyer, and the regulator.

What does the Bill intend to provide in nutshell?

1. Introduction of the concept of using only ‘carpet area’ for sale which has till now been ambiguously sold as super area, super built up area etc.
2. Register real estate agents which have hitherto been un-regulated, with clear responsibilities.
3. Promoters (Builders) to register all projects, prior to sale; and only after having received all Approvals from development/municipal authorities and functions.
4. Real Estate Authority(s) and Appellate Tribunal in the States, to enforce accountability norms for the promoter buyer and the real estate agents.
5. Timely completion of projects, and prevent fund diversion.
6. Speedy and specialized adjudication mechanism to settle disputes between the promoter, buyer and real estate agents.
7. Developers or builders have to put aside 70 per cent of the proceeds of a particular project in a separate bank account which will help to fund the project and in timely delivery.

Well, in its present form the bill appears to be a "Real Estate Thana" and every wrong doing by real estate developer can be reported in this "Thana" and necessary action will be taken as per the Bill's guidelines. However, we all know, how long and tedious it gets to get justice from "Police Thanas". So, let’s wait and watch what action or justice comes out from this new "Real Estate Thana".

Make no mistake, even though the bill falls short on policy front...yet it could prove to be helpful for buyers. However, the bill would have served the larger purpose if it were to encourage people including builders, buyers, and government agencies to do right things instead of taking action when something wrong has been committed. Lets explore...

What is needed?
We need environment ministry, income tax authorities, revenue department to work in tandem with Real Estate Regulatory Authority to provide clearances, keep a check on fair practices, and study the real estate market regularly.

1. The idea is to have a single window clearance mechanism wherein real estate developers submit their plans for approvals and the regulator approves or disapprove the same. It is estimated that, this alone can reduce the cost of housing by about 20%. Phew…
2. Income tax department to check who is buying the property from developers. In other words, it should be made mandatory by law for real estate developers to disclose the buyer details. This will ensure true demand for the housing and keep away speculators. After all housing is a need first and then investment vehicle.
3. Revenue department to study the real estate and housing market carefully and then levy stamp duty. It is widely believed that reducing stamp duty and registration charges will encourage buyer and seller to report the market value of property instead of the circle rate value. Thereby, eliminating cash from resale market.
4. Environment ministry to provide timely and consistent environment clearances with regards to water, natural resources, forestation, etc.
5. Land acquisition department to ensure that land has been acquired as per the governing law.

Well, we do not live in an ideal world and let's hope slowly but surely, the role of real estate regulator evolves and we have an act that promotes fair practices on part of all the concerned parties involved.

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