Most real estate companies in the capital are running their business without approval and registration from the capital development authority and continuously breaking the national building code.
An official of Rajdhani Unnayan Katripakkha (Rajuk) said only 116 companies belonging to Real Estate Housing Association of Bangladesh (REHAB) have applied for registration in prescribed forms this year in response to the notification, and only 39 have been registered till April 21.
Furthermore, nearly all large companies – Sheltech, Concord Real Estate & Building Products Ltd, Navana Real Estate Ltd, Asset Developments & Holdings Ltd, Eastern Housing Ltd, etc. have not applied for registration.
There is no specific data to the Rajuk authorities on how many real estate companies are operating their businesses.
However, on an average around 1,500 mushrooming companies are involved in the housing business without being registered with REHAB and Rajuk, the official said.
The government approved a draft Real Estate Management Ordinance in 2008 for taking action against unregistered real estate companies.
Later for specific land use plan in Dhaka, the government formulated Detailed Area Plan (DAP) and finally passed the Real Estate Management Law in 2009, Real Estate Development and Management Act in 2010 and the Real Estate Development and Management Regulation in 2011.
Rajuk has issued notices at different times including March, this year to unregistered companies to complete their registration according to Real Estate Development and Management Act 2010 and Real Estate Development and Management Regulation 2011.
But no deadline for submitting the application was set to those companies.
A high official of Rajuk said the acts provide for punishment –financial penalty or even two years imprisonment – to unauthorised developers for wrongdoings and protection of the interests of apartment buyers and landowners.
Meanwhile, some owners of private real estate companies complained that a large number of real estate companies are not trying to get registration only to avoid the harassment of Rajuk’s corrupt officials and employees.
An unregistered real estate company’s managing director told the Dhaka Tribune, “Due to irregularities and corruption of some of its officials, Rajuk authorities find limitations to thwart the unscrupulous private real estate companies and developers from doing business.”
He also said Rajuk introduces new law every year and asks for registration which accompanies unnecessary harassment by corrupt Rajuk officials, time killing, etc.
“In order to avoid harassment and obtain registration easily, we engage with agents to facilitate transaction of a lot of money,” he said.
Rajuk official Md Golam Mostafa told the Dhaka Tribune, “We have already advertised in the national daily newspapers asking the private real estate companies to complete their registration according to Real Estate Development and Management Regulation 2011, but most of them did not respond to it strongly.”
He added that last year about 400 companies completed their registration according to Real Estate Development and Management Act 2010, but this year Rajuk authorities did not find a significant response from the private real estate companies.
“Immediately we will sit to discuss the issue, and take measures against the unregistered companies,” he added.
