Competition, not regulator, need of the hour: DLF

NEW DELHI, APRIL 12:

Favouring open competition rather than a regulator, a senior official of realty major DLF has said that the draft real estate regulator Bill would only increase the number of watchdogs without solving the sector’s problems.

“Speaking on the sidelines of the National Housing Bank conference on ‘Housing: An Engine for Inclusive Growth”, Rajeev Talwar, Executive Director, DLF, said: “Increasing the number of authorities is not the solution to the real estate sector’s problems. We still have to get a number of clearances from various authorities before starting a project.”

The Real Estate (Regulation and Development) Bill seeks to provide a uniform regulatory environment in the sector. It has been sent to the Cabinet and is pending approval. Key elements in the draft Bill include provisions for jail term for developers for misleading advertisements about projects.

Talwar said that the proposed single-window clearance for the real estate sector was not a workable model as developers would still need to knock on various doors.

Meanwhile, the company said it aimed to bring its debt down to Rs 18,000 crore from the current Rs 21,350 crore. “We have been exiting non-core businesses to focus on our core area,” he added.

The company said it was focusing on new residential launches.

Talwar said DLF’s planned to raise Rs 2,000 crore from institutional investors in the domestic and overseas markets. The issue is likely to hit the bourses in May.

Besides helping the company reduce its debts, the issue will also help it stick to the Securities Exchange Board of India (SEBI) listing guidelines for minimum public shareholding at 25 per cent.

DLF owner K.P. Singh and his family own 78.58 per cent stake.