Realtors threaten to quit business

The country's realtors Saturday urged the government not to promulgate the proposed Real Estate Management Ordinance-2008.
They claimed that the ordinance, if enforced, would discourage investment in the sector and give rise to a new crisis in the housing sector.
The council of advisers in its meeting held July 29 approved, in principle, the ordinance with a view to streamlining the real estate business amid widespread allegations of fraud and delay in delivery of apartments by the real estate developers.
The ordinance has a provision for imprisonment of different terms without recourse to bails for the realtors for their involvement in frauds, delay and other defaults.
The leaders of the real estate and housing association of Bangladesh (REHAB) were exchanging views with the journalists on the proposed ordinance at a city hotel on the day.
"We urge the government to scrap the proposed ordinance as it will worsen the situation in the housing sector instead of improving it," REHAB president Tanveerul Haque Probal said.
"None will carry on their business once the ordinance is passed. Even, the engineers and officials working at different real estate companies will also be discouraged to work as they will also be jailed if any fault or charges are framed against them by the buyers as per the provision of the new ordinance," Mr Probal added.
REHAB leaders proposed for the formation of a tribunal involving people from different social groups to help resolve the existing problems, especially the problems relating to delay in the flat handover, use of low quality ingredients and unilateral cancellation of bookings by the developers.
He however admitted that there were a number of good provisions in the proposed ordinance that the realtors might incorporate into their sale deeds.
He said problems exist in all sorts of business in the country and those can be resolved in accordance with the country's existing laws.
He said: "All business have problems and fraudulent practices are not unknown there, but we would be the worst victims," he added.
"If the ordinance is approved for the real estate sector, then we ask the government to enact ordinances for other businesses as well," REHAB chief added.
However, the REHAB leaders warned that they would take recourse to demonstrations of various types, including wearing black badges and formation of human chain. "We will also mobilise public opinion and prevent the ordinance from being passed," they said.
The realtors also warned that all the realtors would stop construction work once the government promulgated the ordinance.
"We will stop construction works of all under-construction and new projects once the government approves the ordinance," said Ahmed Riad Momen, managing director of Momen Real Estate Limited who is also a senior leader of the REHAB.
The REHAB leaders hinted that vested quarters had been working against the sector for long. They are in favour of foreign companies entering in the booming sector, the realtors said.
He said the government has taken the move for enacting the ordinance at a time when the realtors had started to build houses in district towns.
REHAB leaders Md Akter Biswas, Sayed Nazrul Biddut, Zahid Hossain and others were present at the programme.

(The Financial Express - 03.08.2008)