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Corruption - Real estate relationship - How to reduce this?
Written By Vasanth - 1 September, 2011
Bangalore governance law and order Corruption Transparency Analysis
Real estate business do not go without corruption. Right from Khatha Extract to Registration to Plan Approval, every stage has corruption. Builders, Contractors, Real Estate Agents everyone is ready to shell out anything to acquire property either legally or illegaly. Enroachment of Government or Private Property is common and cannot be controlled due to corruption. Local corporations like our BBMP and Mysore's MCC and Development authority like Bangalore's BDA and Mysore's MUDA , Registration offices play a prominent role in this corruption. There is so much greed for land in our Country due to the high appreciation rates which is controlled by Real Estate Agents. People do not hesitate to invest in realestate, so in the bribery act on the way.
I am opening this thread just to discuss/brainstorm on how this realestate related corruptions can be currbed or eliminated.
COMMENTS
murali772 - 5 September, 2011 - 11:50
Perhaps an Anna effect - the Inspector General of Stamps and Registration, the department that had the dubious distinction of being listed as most corrupt by the "I paid a bribe" site, has as of 25th August, gone on to publish its "Citizen charter" - check this.
Would like to believe that things are happening, finally!
professionalism - the need of the hour
murali772 - 5 September, 2011 - 11:48
If this could be outsourced, process will be more streamlined, and SLAs can be applied to the BPO operator.
Yes, that's indeed what needs to be done, by engaging professional outfits (not the likes of this). And, the same applies to all government departments. The gains will be huge and in many ways, for a marginally higher cost.
Srivatsava - 1 September, 2011 - 14:18
One part of the problem is the the corruption is the rampant bribery during registration - percieved as a small fee to get over their under-valuation of property.
What is needed to address this is to
a. Increase the guidance value closer to the market value. Todays market values are about twice the guidance value for registration.
b. Reduce the registration charges from the present 7.5% to about 2%. With that, the 'incentive' to register a sale at a lower valuaion is lost.
c. Change the banking regulations governing the property loans. Banks today give a loan for about 80-90% of the transaction value. But, the property gets registered for just about 50% of the deal value. If the bank loans are to given on basis of the registration value only, there will be a huge push for people to register at fll value.
d. Introduce online registration. This mechanism - to disconnect an official from the aam aadmi while he gets his service - just goes along with the other reforms - like income tax etc.
Online Source of Ownership / Khatha Extract
Vasanth - 3 September, 2011 - 00:56
One of the major problem while purchasing the site is to get the khatha extract from BBMP. For this again there is bribery. Based on PID Number, one should be able to see the Khatha directly on the internet. Can BBMP do this?
srinidhi - 3 September, 2011 - 02:17
The over ambitious project of BMRCL-Mantri combine to build a Mall-metro station has hit speed breakers because of exposed khatha issues..
http://www.deccanherald.com/content/188057/builder-took-metro-ride-report.html
only an RTI could get this data out..thanks Annaji!
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