Confederation of Real Estate Developers’ Associations of India
CREDAI: THE VOICE OF INDUSTRY
The Confederation of Real Estate Developers’ Associations of India (CREDAI) is the apex body for private Real Estate developers in India. CREDAI represents over 6,000 developers through 18 member associations across the country.
CREDAI links private real estate developers to the government and customers through numerous initiatives and activities. CREDAI’s success in bringing the majority of organized private real estate developers under a single umbrella is a potent force that promises the rapid development of the realty sector—one that knows itself as a major driver of India’s economic growth.
ACHIEVEMENTS:
CREDAI’s honour roll lists achievements in two broad categories—CREDAI influences and helps rationalize government policy, and it brings together developers to move towards transparency and better practices.
Shaping Policy
With an impressive track record, CREDAI has evolved into an influential body that helps shape real estate policies for the nation.
The government regularly seeks consultation from CREDAI at several levels and instances. For instance, CREDAI is always invited for discussions before the budget and the organization presents its pre-budget memorandum every which year is taken into consideration by the Ministry of Finance. CREDAI provides a balanced and sensitive feedback from the private real estate industry for all policies under formulation.
Environmental Impact Assessment
When the Ministry of Environment came out with a notification to enforce environment impact assessment compliance on real estate projects on September 14, 2006, CREDAI represented consistently to the government pointing out the drawbacks in the notification. The EIA Notification required that construction of new projects or activities or the expansion or modernization of existing projects entailing change in process or product mix (for activities listed in the schedule) shall need prior environmental clearance from the central government or the state level Environmental Impact Assessment Authority depending on the project.
Service Tax on Residential Construction
Owing to the ambiguity and confusion about whether service tax is applicable to the construction of residential complex (as defined under Section 65 {105} of Finance Act), real estate developers across the country were experiencing escalating transaction costs. Coupled with the lack of liquidity in the Indian market due to the credit crisis, this created a grim situation.
Service Tax on Commercial Rentals
Another area to cheer for developers and customers alike has been the repeal of the levy of service tax on renting of immovable property for business or commerce. In April 2009, the Delhi High Court struck down the levy as unconstitutional as the renting of immovable property involved the rendering of no service. The levy had come into force in 2007 and saw massive protests across the country, with CREDAI relentlessly pushing for a rational decision.
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