Recently the Competition Commission of India fined real estate major DLF with a fine of around 600 Crore or approximately 139 Million dollars. This fine is to force buyers to sign one sided contract and make changes in projects without informing the buyers. The buyers were totally at mercy of DLF once they have booked a flat. This is path breaking judgement as it brings to the forefront how the builders have been making a mockery of law and taking the apartment buyers for granted.
This brings me to the earlier posts that I have written regarding the corruption with the real estate sector in India:
We definitely need a real estate regulator that can control the coming up of new projects in market. The real estate lobby is as expected objecting to the same, as most of the big real estate companies are controlled directly or indirectly by either politicians or mafia bosses I don’t think we will see a real estate regulator anytime soon.
Is it not amazing that we have a regulator for Mutual funds where we can invest as little as 500 Rs via SIP, and we have a regulator for insurance where you can buy a policy for annual premium of Rs 1000. But housing sector where you invest your life’s savings or pay for the house for rest of your life after buying and almost 80% of an individual’s assets are tied up we do not have a regulator. If this is not an example of “Pound Foolish and Penny Wise”, then what is it?