CREDAI or CREDAI India is an apex body for real estate developers and builders in the country. The body functions with set guidelines and thoroughly sieves its applicants before giving them membership. Having worked with one of the most successful real estate developers in India and USA, astro strategist Hirav Shah knows the issues of the real estate industry in and out. He feels it is important to keep oneself updated about one of the most influential bodies in real estate in India today. Here’s a quick guide to all that you would want to know about CREDAI.
What is CREDAI?
Everyone who has something to do with real estate would have come across the term CREDAI at some stage or the other. For the uninitiated, here’s the meaning and full form of CREDAI: The confederation of Real Estate Developers’ Association of India (CREDAI) is an association formed by developers and builders in India for self-regulating real estate business development.
CREDAI membership is crucial for a company or organization as they can get to know the voice of the real estate industry. Since CREDAI deals with a good number of real estate organisations and associations, by interacting and bonding with other real estate companies or organizations, a realty firm can further its own business and profits.
CREDAI was formed in 1999 and serves as an apex body for private realty developers. The body is a non-profit organization registered under Section 25 of the Companies Act, 1956.
It’s a platform for private builders and currently has 20,000 members with 21 state chapters and 220 city chapters. CREDAI also has a youth wing and women’s wing. The youth wing has been formed to bring together the next generation of real estate builders and developers so that they can be groomed and nurtured to transform into better professionals, ethical businessmen and true leaders in real estate. The idea is to educate the second generation entrepreneurs on various aspects through summits and study apart from being a platform for knowledge sharing, interaction through business forums and contributing to society through CSR initiatives and activities.
In what can be said to be a first-ever initiative of its kind in real estate, CREDAI has launched CREDAI women’s wing with the objective of making the industry gender neutral in years to come. It strives towards promoting women leadership in realty.
Launched in 2017, CREDAI women’s wing is expected to build a strong networking forum and create an incubation programme to push more women into actively participating in the industry. This initiative has been widely appreciated throughout the country. CREDAI Women’s wing will also deal with various issues that affect all women stakeholders in the realty sector.
Goals of CREDAI
1) To assist the government in policy making regarding housing and to achieve housing surplus status.
2) To create sufficient infrastructure for urban development.
3) To take up various initiatives and promote skill development, so that it can contribute to the GDP of the country.
CREDAI India memberships are open to all associations of promoters and all associations of real estate developers in India. However, individual members or any government or quasi-government organization cannot be a member of CREDAI. For an individual builder or promoter to become a member, they must first become a member of city or state-level developer association and then the association can become an active member of CREDAI.
If any state or city or town level association intends to become a member of CREDAI, they can download the form and apply to the secretary. This must be proposed and seconded by a member of CREDAI and recommended by a member of the Governing Council Board.
Why become a CREDAI member?
For starters, it must be understood that the membership is rather valuable for members. This is how a company benefits from being a CREDAI member
- An organization can upgrade its skills and enhance their perception of the real estate sector through various skill development programmes, solid waste management, labour welfare and education initiatives taken up by CREDAI from time to time.
- A member company can influence various policies and different processes relating to taxation, interest rates, housing development, FDI, environment and labour legislation.
- Also, one gets to know the unified voice of the realty industry as CREDAI deals with a good number of realty developer organisations and associations.
- Since CREDAI conducts various debates, workshops, meetings, events, discussions, a company can upgrade its knowledge and skills regarding realty business and can get a deeper understanding and perception of the field.
- Thanks to interactions with other companies and organisations, a company can increase its own profit and business.
Function of CREDAI India:
- Like all bodies, CREDAI has certain rules and regulations to be followed by all its members. This helps in building uniformity in the practices and policies adopted by builders and developers throughout India. CREDAI carries out several functions such as mediating disputes between buyers and developers and also represents its members before the government on policy matters affecting the realty sector.
How does CREDAI resolve disputes?
CREDAI can be approached online through its portal www.credai.org. Also, since it has various regional chapters, it would be best to file a complaint with the relevant chapter. The filing process is simple and replies are prompt. Once a complaint is filed online, CREDAI will provide a date for proceedings. Cases of different builders are taken up separately and if several buyers have a similar complaint, then the cases are clubbed together. The mediations are informal and those who lodged a complaint can put their case forward.
At the meeting, there will be a mediator from CREDAI and a representative from the builder or developer. The settlement is then recorded and signed by the mediator, buyer and representative of the builder. But it has to be remembered that the order has the sanctity of a court and is binding on both parties like a contract.
CREDAI membership categories:
The body has four types of memberships:
a) Member association
b) Associate member
c) Overseas member
d) Invitee member
Membership association: Here, there are two types:
- If a state level organisation has at least two city or town level associations as its members, then it becomes eligible for national level membership of CREDAI.
- Any city or town level association in any state where they have a state level association, can become a member of CREDAI. However, once a state-level association becomes a member of CREDAI national, then the city or town level association will not have the eligibility to remain a member of CREDAI national.
The fee is about Rs 4 lakh for membership for state level associations and it is Rs 1 lakh for city level associations.
Housing finance companies, various commercial banks, other financial institutions related to real estate sector, consultants, association or council or organisation having activities in realty, professional institute or organization dealing with collection or dissemination of information, R&D organisations are eligible to be enlisted as an associate member of CREDAI. One has to pay Rs 5 lakh for membership.
Any foreign association and organisations who are involved in real estate activities are also eligible to become overseas associates, though they have to meet certain rules and regulations. Such memberships cost Rs 10 lakh.
All members of city level associations can be invitee members, but they will not have voting rights.
There is also an annual fee to be paid by all members.
Admission process of membership
1) Any state or city or town level association can become a member by downloading the application form and applying it to the Secretary. This has to be proposed and seconded by a member of CREDAI and recommended by a member of the Governing Council Board. A subscription fee has to be sent along with the form.
2) If the Governing Council Board feels the need, then it can establish a screening committee while taking a member.
3) A majority of the members of the Governing Council Board must be present and vote for a member to be given approval.
4) If the Board does not respond within 30 days, then it is obvious that the application has been rejected.
5) If the application is rejected, the association or person will be intimated and subscription fee returned.
6) If accepted, the applicant will get a notification from the Secretary or Director General along with a welcome letter and membership number.
7) If any organisation wants to become an associate member of the Confederation, then the applicant needs to apply to the Secretary and must be recommended by any member association of the Confederation. It’s necessary to submit the subscription fee.
8) Once an applicant becomes a member, then they can use the CREDAI logo and mention ‘a member of CREDAI’ in their marketing communication. This will give them traction, brand value and mileage.