Realtors seeks industry status
By siliconindia | Tuesday, November 30, 2010
Bangalore: Realtors intensified their demand for a full-fledged industry status to ensure organised funding for the sector. The fresh demand comes close on the heels of the cash-for-loan scam that has rocked the real estate industry and its financing sources. "It is high time the government accords formal industry status to the real estate sector and this will ensure that we have access to organised funding options. Besides, this is good time to revisit all the pending real estate regulatory policies and implement them," said T Chitty Babu, president, Confederation of Real Estate Developers' Association of India (Credai). The system of funding is in place and all projects are meticulously scanned and secured two to three times, backed by the personal and bank guarantees. The real estate funding plays a pivotal role in generating revenue for the banks as the interest is higher than any other business vertical. It is a well known fact that all the real estate loans are fully backed with a minimum of 150 percent security, Babu said.