Why Winning Developers' Trust Should Be Govt's Priority

Mumbai-based ABC Developers sensed a great opportunity when the Maharashtra government announced its plans to redevelop slums of Mumbai. While the monetary benefits of the project were not much, the promoter of the company thought he could be an agent of bringing about a social change, too, if he got a chance to provide better housing to slum dwellers. 

Luckily, the company was selected to partner the government in carrying out the task. In a matter of one and a half years, the promoter of the company is praying for an exit from the project. Apparently, slum dwellers were not all that interested in living in better housing. Their reluctance to leave their dingy homes led to the crumbling of government plans. Whatever money was invested so far will be wasted. If the developer moved court against those responsible for his loses, he may end up losing more money and time. His past experience told the wise businessman it was better to exit quietly. His present experience, however, will do the real estate sector more harm than we can imagine. The developer has sworn never to engage himself in projects of similar nature; he would not entertain the ideas to bring about “social changes” at the cost of his personal finance.

There could have been a worse situation. Had the developers taken the offenders to the court and demanded justice, the outcome might have been more intense. While there would have been no guarantee if the court would decide in his favour, the time and money spent in the process would have been nerve wrecking. Court cases are infamous for lengthy; they often outlive generations in India. As far as, the real estate sector is concerned, the damages they cause are more than monetary. Passive developers, who are unsure about how government's infrastructure plans are going to fare, will amount to a great deal of damage as far as infrastructure development is concerned. At the end of the day, it is more about the spirit, even in a sector where bricks and sand matter the most. 

To improve things in the real estate sector, the current government has initiated several moves and speedier resolution of disputes is one of them. When the Real Estate Regulatory Authority (RERA) comes into being, property disputes will see quicker resolution.  While the new Act would keep a check on developers and their dealing, this will also act an effective tool to rid them off many headaches that might arise owing to some or the other dispute.