Ministries asked to sit with realtors to end impasse

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FE Report
The government has asked the ministries concerned to sit with real estate developers to end an impasse over promulgation of the proposed Real Estate Management Ordinance-2008 aimed at streamlining the sector, officials said.
They said the directive came at a meeting between chief adviser Dr. Fakhruddin Ahmed and leaders of the realtors on Thursday last.
The standoff in promulgation of the ordinance has been created after the real estate developers reacted sharply to some conditions outlined in the ordinance.
"Following our appeal, the chief adviser asked secretaries of the ministries concerned to sit with the realtors to review the conditions set in the proposed ordinance and end the impasse," President of Real Estate and Housing Association of Bangladesh (REHAB) Tanveerul Huq Probal told the FE on Tuesday.
He said the realtors are afraid of launching new projects after the council of advisers approved in principle the proposed Real Estate Management Ordinance-2008 in July.
Meanwhile, a large number of landowners, who provided lands to realtors for building flats, alleged that the developers are not starting construction work on their land, the delay of which will create tremendous problem for them.
"A developer signed an agreement with me long ago for constructing an apartment building on my land, but the company has not started the work although it has evacuated us from the place where we used to live," one land owner said without naming the firm.
"The company is telling me to have patience without assurance of construction work," he said requesting to be unnamed.
Rafiqul Islam of the city's Rampura area, who faces similar problem, said: "Realtors have made us hostage to realise their demands."
Mr. Proval said: "Many developers, including me, are not taking up new projects due to fear of promulgation of the proposed ordinance."
The REHAB, the body of the country's 411 realtors, said the interest of the realtors has not been protected in the proposed ordinance.
Abdul Kayam, chairman of the National Housing Authority (NHA), earlier had told the FE that the government drafted the ordinance to protect the interest of flat buyers.
The country has no legal provisions to protect the interest of flat buyers, who are often cheated by a section of the realtors, and they cannot seek any legal recourse in absence of a proper law in favour of them, he said.
The proposed ordinance, which has clearly defined rules and regulations relating to sales and purchase of plots and flats in private sector, kept a provision of maximum three-year rigorous imprisonment and penalty for realtors in case of fraudulent practices.
The land developers and home builders will require to obtain licences for operating their businesses from the authorities concerned when the law comes into force, it said.
In line with the regulations, the proposed ordinance said every developer will require to have permission from the appropriate authorities for establishment of any new housing project.
For any reason if any buyer intends to cancel the booking, the proposed ordinance said a developer can not deduct more than 10 per cent of the booking money paid by the buyers and the balance should be returned within three months.
"We are not against such law, but what we demand is protection of our interest," REHAB senior vice president Nasrul Hamid said.
He said there is no such provision in the proposed ordinance, which can protect interest of a realtor.
The real estate sector's contribution to the country's GDP is on an average 9.0 per cent and its annual growth rate is around 4.0 per cent. It has employed around a 2.0 million workforce directly and indirectly.