Real Estate Management Ordinance still under scrutiny
Wednesday, 12 November 2008
Syed Ishtiaque Reza
A debate continues on the proposed "Bangladesh Real Estate Management Ordinance 2008" and the piece of law is still under scrutiny to make it acceptable, mainly to the developers.
Although initially acceptable to many, realtors however object to some of its provisions which could implicate them in non-bailable cases 'without solid ground'.
However, officials in the housing department say that it should not be a problem for the good developers who care about quality and goodwill.
The criticism began when the council of advisors of the caretaker government approved in principle the ordinance on July 29 to protect the interests of the buyers. REHAB (Real Estate Housing Association of Bangladesh), soon afterwards, came up with its high objections and mounted pressure on the government for a review.
It is now under scrutiny. And the developers say they are yet to know the provisions.
Developers say that often delays in implementing projects are caused due to lapses on the part of Rajuk and other utility services. Why then, the developers should be punished for the failure to hand over the apartments in time.
The developers also point out that while the proposed law protects the government and its officials, the developers cannot file any case against the officials, responsible for causing the delays.
But the owners or any functionary of the real estate company can be fined or jailed for violating any provision of the ordinance and REHAB finds it as "double standard".
Rehab wrote a number of letters to the authorities concerned to make the law fair and non-discriminatory. It said the developers often fail to deliver a flat or plot because of the land owners and government officials. But these factors cannot be kept under the carpet, it said.
The divergence occurred, said realtors, because the government formulated the law without consultations with the developers.
However a senior Rehab member, said on condition of anonymity that the law is necessary to check fraudulence in the sector.
He said allegations of fraud and deception in handing over plots or flats and illegal encroachment of private and public land were rife against a section of real estate companies.
Many innocent people are often lured by false assurances of hole-in-the-wall housing companies due to lack of laws and monitoring. Malpractices prompted the government to bring the fast-growing sector under a stringent law.
A prominent developer, he said there were some drawbacks with the REHAB too. The association leaders, he said, should not have avoided direct confrontation with the authorities. Rather, they should have cooperated the government so that the law is formulated incorporating views of all the sides.
Official sources said, the law ministry was reviewing the draft for vetting. The draft law stipulates jail terms and financial penalties for delinquent developers.
Many companies cheated buyers and failed to hand over the flats or plots even after the payments were made. They also use low-quality building materials to bag windfall profits at the cost of buyers.
The real estate sector, which accounts for over eight percent of the country's GDP, has generated many jobs and businessmen have invested billions of Taka.
The Rehab proposal calls for the establishment of an arbitration tribunal with participation of people from all the sides, the government, realtors, buyers, lawyers and the media.
A debate continues on the proposed "Bangladesh Real Estate Management Ordinance 2008" and the piece of law is still under scrutiny to make it acceptable, mainly to the developers.
Although initially acceptable to many, realtors however object to some of its provisions which could implicate them in non-bailable cases 'without solid ground'.
However, officials in the housing department say that it should not be a problem for the good developers who care about quality and goodwill.
The criticism began when the council of advisors of the caretaker government approved in principle the ordinance on July 29 to protect the interests of the buyers. REHAB (Real Estate Housing Association of Bangladesh), soon afterwards, came up with its high objections and mounted pressure on the government for a review.
It is now under scrutiny. And the developers say they are yet to know the provisions.
Developers say that often delays in implementing projects are caused due to lapses on the part of Rajuk and other utility services. Why then, the developers should be punished for the failure to hand over the apartments in time.
The developers also point out that while the proposed law protects the government and its officials, the developers cannot file any case against the officials, responsible for causing the delays.
But the owners or any functionary of the real estate company can be fined or jailed for violating any provision of the ordinance and REHAB finds it as "double standard".
Rehab wrote a number of letters to the authorities concerned to make the law fair and non-discriminatory. It said the developers often fail to deliver a flat or plot because of the land owners and government officials. But these factors cannot be kept under the carpet, it said.
The divergence occurred, said realtors, because the government formulated the law without consultations with the developers.
However a senior Rehab member, said on condition of anonymity that the law is necessary to check fraudulence in the sector.
He said allegations of fraud and deception in handing over plots or flats and illegal encroachment of private and public land were rife against a section of real estate companies.
Many innocent people are often lured by false assurances of hole-in-the-wall housing companies due to lack of laws and monitoring. Malpractices prompted the government to bring the fast-growing sector under a stringent law.
A prominent developer, he said there were some drawbacks with the REHAB too. The association leaders, he said, should not have avoided direct confrontation with the authorities. Rather, they should have cooperated the government so that the law is formulated incorporating views of all the sides.
Official sources said, the law ministry was reviewing the draft for vetting. The draft law stipulates jail terms and financial penalties for delinquent developers.
Many companies cheated buyers and failed to hand over the flats or plots even after the payments were made. They also use low-quality building materials to bag windfall profits at the cost of buyers.
The real estate sector, which accounts for over eight percent of the country's GDP, has generated many jobs and businessmen have invested billions of Taka.
The Rehab proposal calls for the establishment of an arbitration tribunal with participation of people from all the sides, the government, realtors, buyers, lawyers and the media.