Hardeep Singh Puri, Union Minister of State with Independent Charge in the Ministry of Housing and Urban Affairs, says sooner than later the fly-by-night operators in India’s real estate sector will be completely eliminated.
Thanks to the Goods and Services Tax regime and the RERA have disrupted the market in a big way, he said at a recent conference.
The policy decisions like demonetisation, GST and RERA have brought a disruption in the market. “But I have no sympathy towards them. I want the fly-by-night operators to be completely eliminated,” Puri said.
He, however, said that it is necessary to solve issues of those developers, buyers and promoters who have genuine problems. But that should not be at the cost of home buyers who put their life savings into the projects.
“The period of the offerings of 40:60 or 50:50 or 80:20 have gone now.” Now every project has to be registered including ongoing projects. Even the agents who deal in the sector have to register. There is, therefore, a lot of hue and cry and a lot of blood shed,” the minister said.
In today’s day and age with zero tolerance for corruption if one thinks they can take somebody’s money and invest it elsewhere, they are mistaken, he said.
The minister further noted that unsold inventory is declining and new projects are starting, which is an indication that the construction industry has streamlined.
“We are going to be a USD 5 trillion economy by 2025 and USD 10 trillion by 2030. If there one sector I would bet on for medium to long term, then it is construction. But we have to clean the mess just now,” Puri added.