For healthy growth of housing sector
Tuesday, 1 July 2008
Exploding population in the urban centres and scarcity of houses to accommodate them is the reason behind the phenomenal growth of the housing sector. Undoubtedly, it is fulfilling a very vital need of the people. But in the Bangladesh context, where capital formation is passing through its primitive phase, everything does not follow the ideal path of growth. The real estate sector is no exception. Though a majority of the operators in the real estate sector are professional and scrupulous, the crime of fraudulence committed by a handful of operators tarnishes the image of the entire industry. Allegations of breach of contract with land owner or buyer of flat, hoax, fraudulence, outright land grabbing, etc., have often been brought against the property developers. And many of such complaints are also not without foundation.
Against this backdrop, the government has framed a draft law titled Real Estate Management Ordinance-2008 in order to establish discipline in the sector, bring errant property developers to justice and protect the buyers of flat. The draft of the proposed ordinance includes some tough provisions to contain the delinquent property developers. As for example, housing companies that are carrying out their business without proper registration with the National Housing Authority (NHA) and other government-owned agencies in the city areas will have to pay a fine of Tk. 500,000 and those found guilty of repeated violation of the rules will have to suffer a prison term of five years. However, the Real Estate and Housing Association of Bangladesh (REHAB) has opposed the harsher provisions of the proposed ordinance saying that those will stifle the growth of the housing sector. They are even against the provision of registering the housing companies with the NHA and have even suggested in stead that it would suffice for them to register with the REHAB. The real estate developers' association has also opposed any provision of the proposed ordinance that requires the delinquent operators in the housing sector to go to jail. On the contrary, the REHAB suggests that the offending companies will only have their registration with the apex body cancelled.
In fact, the REHAB leaders have recommended against most of the provisions of the proposed ordinance and called for toning down the stricter sections of the ordinance. It is only natural that the REHAB, which is an apex body of the real estate developers, will try to curry favour with their members and be concerned with the growth of the business in this sector. But the government is there to protect the rights of its entire citizenry first and then look into the interests of the different sections of the trade and industry. So, it must be hard on any individual or group that is found to be breaking the law and harming others' interests only to satisfy their own mean and selfish ends.
However, it has also to be ensured at the same time that no law should come in the way of the healthy growth of the housing sector. The point being stressed here is the healthy growth of the sector, which also implies that in such a case all the members of the community including the buyers of flats and other clients of the sector prosper all together. The government needs to strike a balance between a healthy growth of the real estate sector and the interests of the buyers of the flats and the owners of the lands. On this score, it has to be kept in mind that law should be tough on crime whoever its perpetrator is and nobody should be allowed the license for self-aggrandizement at the expense of the larger interest of the community.
Against this backdrop, the government has framed a draft law titled Real Estate Management Ordinance-2008 in order to establish discipline in the sector, bring errant property developers to justice and protect the buyers of flat. The draft of the proposed ordinance includes some tough provisions to contain the delinquent property developers. As for example, housing companies that are carrying out their business without proper registration with the National Housing Authority (NHA) and other government-owned agencies in the city areas will have to pay a fine of Tk. 500,000 and those found guilty of repeated violation of the rules will have to suffer a prison term of five years. However, the Real Estate and Housing Association of Bangladesh (REHAB) has opposed the harsher provisions of the proposed ordinance saying that those will stifle the growth of the housing sector. They are even against the provision of registering the housing companies with the NHA and have even suggested in stead that it would suffice for them to register with the REHAB. The real estate developers' association has also opposed any provision of the proposed ordinance that requires the delinquent operators in the housing sector to go to jail. On the contrary, the REHAB suggests that the offending companies will only have their registration with the apex body cancelled.
In fact, the REHAB leaders have recommended against most of the provisions of the proposed ordinance and called for toning down the stricter sections of the ordinance. It is only natural that the REHAB, which is an apex body of the real estate developers, will try to curry favour with their members and be concerned with the growth of the business in this sector. But the government is there to protect the rights of its entire citizenry first and then look into the interests of the different sections of the trade and industry. So, it must be hard on any individual or group that is found to be breaking the law and harming others' interests only to satisfy their own mean and selfish ends.
However, it has also to be ensured at the same time that no law should come in the way of the healthy growth of the housing sector. The point being stressed here is the healthy growth of the sector, which also implies that in such a case all the members of the community including the buyers of flats and other clients of the sector prosper all together. The government needs to strike a balance between a healthy growth of the real estate sector and the interests of the buyers of the flats and the owners of the lands. On this score, it has to be kept in mind that law should be tough on crime whoever its perpetrator is and nobody should be allowed the license for self-aggrandizement at the expense of the larger interest of the community.