Developers are hoping that Anna Hazare’s agitation against corruption and implementation of Lokpal Bill will save them from paying kickbacks to politicians and bureaucrats.
Developers are hoping that Anna Hazare’s agitation against corruption and implementation of Lokpal Bill will save them from paying kickbacks to politicians and bureaucrats. As a result, property prices may decrease it.
Sunil Mantri, managing director of Mantri Group, said a part of a project’s cost goes in kickbacks. “If officials pass the proposals without taking bribe, then it will ease the current property prices—benefiting the common man. Anna Hazare is a ray of hope to wipe out corruption.”
It has become a practice in the real estate industry to pay kickbacks. Developers do not approve of projects without bribe.
“We need to stop it somewhere as this is eating the poor man’s hard earned money. If the government would have passed the bill 42 years ago, it would be a different picture today,” he said.
While buying flats, buyers pay 20% additional amount of the actual cost of the flat. Developers have been spending this 20% amount on bribing civic officials and politicians to get the projects approved. This amount is recovered from buyers.
“We have to spend between Rs10 lakh and Rs1 crore to get a project approved. The amount depends on the size, developer’s name, location of the project and total cost of the project. We have a special team which bargains with civic officials and politicians. Anna is a beacon of hope for us now,” said a city developer, requesting anonymity.
Mantri is hopeful that passing the Lokpal bill will help them to a great extent.
“Government officials start demanding money even if the project has met all norms. I do not want to give bribe, but in compulsion, we spend money. Anna is fighting for a great cause,” he added.
Paras Gundecha, president of Maharashtra Chambers of Housing Industry, said Anna’s movement will not only help the real estate industry, but every sector. “We are with Anna Hazare to eliminate corruption,” he said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}