Vice-President M Venkaiah Naidu on Thursday called upon the industry bodies in the Real Estate Sector to institutionalise a code conduct and a self regulation mechanism to curb unethical practices.

Addressing the young entrepreneurs and professionals at the 3rd YouthCon organised by Confederation of Real Estate Developers Association of India (CREDAI), here, he pointed out that the sector had come under severe scrutiny by the apex court and statutory Consumer rights bodies due to some unethical practices followed by certain players.

Mr Naidu said that the growing NPA in real estate had not only affected Banks but also dried up Bank loans to the sector from 63 per cent in 2013 to 17 per cent in 2016, thereby accentuating the stress. 

“You owe as much to your customers and the workers as you do to creditors and suppliers. More than financial viability, it is social obligation and trust that is at stake”, he said.

Quoting the recent report of CAG on Real Estate sector, the Vice-President said that 95 per cent of the real estate developers, builders and agents did not have mandatory PAN. He also pointed to surveys from the sources like CREDAI and Real Estate Regulatory Authority (RERA) and said that out of around 3,000 entities surveyed; more than 500 didn’t file Income Tax Returns

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