Transforming Rural Land to Urban – Ethical Considerations in Real Estate Development

Authors

  • Anthony De Sa Research Scholar, RICS School of Built Environment, Amity University, Noida.
  • Satya N. Mandal Distinguished Professor,RICS School of Built Environment, Amity University, Noida.
  • Deepak Bajaj Director & Head of Institution,RICS School of Built Environment, Amity University, Noida.
  • N. Sridharan Professor, School of Planning and Architecture, Delhi.

DOI:

https://doi.org/10.25175/jrd/2022/v41/i3/172504

Keywords:

Peri-Urban, Stakeholder Perceptions, Ethics, Ethical Code, Real Estate, Built Environment, Regulation, RERA, AIFORERA.

Abstract

The rural-urban frontier is a constantly shifting one due to a variety of economic and social factors that trigger this transformation in the rural-urban continuum. The most intense changes in the built environment are taking place outside the borders of cities, in rural areas adjacent to them. Real estate development has become the most significant instrument for this transformation. Existing real estate industry ethical codes in India are short on specifics and lack enforceability; a statutory code of ethics could promote best business practices. A schematic diagram is developed to understand the complex interplay of ethical behaviour between agencies in the real estate ecosystem. Drawing on the deliberations of a high-powered focus group as well as a rich all-India sample of 103 respondents covering 15 States, the paper identifies what the various stakeholders perceive as priorities for incorporation in a common code of ethics. The surveyed sample includes 87 professionals and experts (administrators, planners, regulators, lawyers, chartered accountants, bankers, engineers, architects, academicians and researchers), and 16 stakeholder associations (of builders, consumers and realtors). Transparency, promise-keeping, accountability, professional excellence, law-abidance, fairness and integrity are identified as the main characteristics prioritised, but the perspectives of stakeholder segments are nuanced and vary considerably, necessitating a strategic approach towards the drafting of a common ethical code. It is suggested that the All-India Forum of Real Estate Regulatory Authorities is best placed to bring on board all stakeholders in the finalisation of a code of ethics that could get statutory moorings in the RERA Act of 2016.

Downloads

Download data is not yet available.

Downloads

Published

2023-06-29

How to Cite

De Sa, A., Mandal, S. N., Bajaj, D., & Sridharan, N. (2023). Transforming Rural Land to Urban – Ethical Considerations in Real Estate Development. Journal of Rural Development, 41(3), 279–295. https://doi.org/10.25175/jrd/2022/v41/i3/172504

Issue

Volume 41, Issue 3, July-September 2022

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

Author Biographies

Anthony De Sa, Research Scholar, RICS School of Built Environment, Amity University, Noida.

I have dome my MA from Bombay University, and MPA from Harvard University, USA. I am also a Fellow of the Royal Institute of Chartered Surveyors (FRICS), London.I am an IAS officer of the 1980 bacth, and retired as Chief Secretary of Madhya Pradesh, after which I was Chairman of the Real estate Regulatory Authority (RERA) of MP.
I am registered for my PhD in the Built Environment in Amity University, Noida.

Satya N. Mandal, Distinguished Professor,RICS School of Built Environment, Amity University, Noida.

Distinguished Professor,
RICS School of Built Environment, Amity University, Noida

Deepak Bajaj, Director & Head of Institution,RICS School of Built Environment, Amity University, Noida.

Director & Head of Institution,
RICS School of Built Environment, Amity University, Noida

N. Sridharan, Professor, School of Planning and Architecture, Delhi.

Professor, School of Planning and Architecture, Delhi

References

Aijaz, R. (2019). India’s Peri-Urban Regions: The Need for Policy and the Challenges of Governance, ORF Issue Brief No. 285, March 2019, Observer Research Foundation. Available at: https:// www.orfonline.org/research/india-peri-urban-regions-need-policy-challenges-governance-49274/

Anquetil, A. (2013). Business Ethics and Moral Skepticism. RIMHE : Revue Interdisciplinaire Management, Homme & Entreprise, 9, 2(5), 3–14. https://doi.org/10.3917/rimhe.009.0003 DOI: https://doi.org/10.3917/rimhe.009.0003

Chawla, N., & Kumar, B. (2022). Does Indian real estate regulation protect urban homebuyers? Policy implications. Cogent Business & Management, 9(1), 2117164. https:// doi.org/10.1080/23311975.2022.2117164 DOI: https://doi.org/10.1080/23311975.2022.2117164

Collins, J. W. (1994). Is Business Ethics an Oxymoron? Business Horizons, 37(5), 1–8. https:// doi.org/10.1016/0007-6813(94)90013-2 DOI: https://doi.org/10.1016/0007-6813(94)90013-2

Cowan, T. (2018). The Urban Village, Agrarian Transformation, and Rentier Capitalism in Gurgaon, India. Antipode, 50(5), 1244–1266. https://doi.org/10.1111/anti.12404 DOI: https://doi.org/10.1111/anti.12404

CREDAI (2020). Code of Conduct. Confederation of Real Estate Development Associations of India (CREDAI). Available at: https://credai.org/members/code-of-conduct

De Sa, A., Mandal, S., Namp, S., & Bajaj, D. (2021). Driving Change in the Brick Manufacturing Industry in India Through the RERA Regulatory Mechanism (pp. 433–443). https://doi.org/10.1007/978-3-030-67654-4_46 DOI: https://doi.org/10.1007/978-3-030-67654-4_46

Dias, C. & Sudarshan, R. (2019). Transformation of Rural and Urban Space. Jindal Journal of Public Policy. 3 (1).

Dimitriades, Z. S. (2007). Business Ethics and Corporate Social Responsibility in the e-Economy. Electronic Journal of Business Ethics and Organisation Studies. 12 (2).

Edwards, G. & Pottinger, G. (2012). Ethics in Real Estate Practice: Education Matters. European Real Estate Society, ERES (2012), Paper No. 307.

Freeman, R. E. (2000). Business Ethics at the Millennium. Business Ethics Quarterly, 1,(10), 169-180 Gazette of India, Extraordinary (2016, March 26th). Real Estate (Regulation and Development) Act, 2016, No. 16 of 2016, Part II –Section 1, No. 17, New Delhi DOI: https://doi.org/10.2307/3857703

Josephson, M. (2015). 12 Principles of Business Ethics. Global Leadership Bulletin, Jan 13, 2015. Available at: https://www.standardizations.org/bulletin/?p=133

Joshi, V. and Chowdhury, A. B. (2020). Covid-19 – Impact on the Indian RE Sector. Anarock. Available at: https://api.anarock.com/uploads/research/ANAROCK_Covid-19%20Impact%20on%20Indian%20RE% 20Sector.pdf –

Kelly, H., Desmond F. McGowan, C. F. A., & Norris, S. (2020). The Case for Real Estate Ethics Education. CRE Real Estate Issues, 44(1), 1–0.

Kelly, H., Desmond F. McGowan, C. F. A., & Norris, S. (2020). Real Estate Ethics in Practical Applications. CRE Real Estate Issues, 44(2), 1–0.

Lok Sabha Debates (2016). Discussion on the Motion for Consideration of the Real Estate (Regulation and Development) Bill, 2016. Available at: Parliament of India website: http://164.100.47.194/Loksabha/ Debates/Result16.aspx?dbsl=7298&ser=&smode=t#10001*1

Lőrinczy, M., Sroka, W., Jankal, R., Hittmár, S., Szántó, R. (2015). Trends of Business Ethics and Corporate Social Responsibility in Central Europe, Aachen: Shaker Verlag.

Mishra, S. (2021). Impact of Coronavirus on Indian Real Estate. Housing.com website (July 23, 2021). Available at: https://housing.com/news/impact-of-coronavirus-on-indian-real-estate/

Nangia, R. (2021, February 21). A closer look at CSR law. Business Line https:// www.thehindubusinessline.com/business-laws/a-closer-look-at-csr-law/article33897046.ece

NAR (2023). Commercial Code of Ethics – Case Studies. National Association of Realtors (NAR), USA. Available at: https://www.nar.realtor/about-nar/governing-documents/code-of-ethics/training/for-existing-members/commercial-code-of-ethics-case-studies

NAREDCO (2020). Code of Ethics. National Real Estate Development Council (NAREDCO), India. Available at: http://www.naredco.in/pdfs/code-ethics.pdf

ONI & BCG (Omidyar Network India & Boston Consulting Group). 2021. Five Years on: An Assessment of RERA. Available at: https://www.omidyarnetwork.in/insights/five-years-on-an-assessment-of-rera

Paswan, R.K. (2015). Role of Ethics in Modern Business: An Important Key Aspect of the Concern. Available at: https://www.academia.edu/28279561/

Role_of_Ethics_in_Modern_Business_An_Important_Key_Aspect_of_the_Concern RICS (2021). Ethics. Royal Institute of Chartered Surveyors website. Available at: https://www.rics.org/en-in/upholding-professional-standards/standards-of-conduct/ethics/

Roulac, S. (ed) (1999). Ethics in Real Estate. Springer-Science+ Business Media, B.V. https:// link.springer.com/content/pdf/bfm%3A978-1-4757-2995-5%2F1.pdf DOI: https://doi.org/10.1007/978-1-4757-2995-5

Salehi, M., Saeidinia, M. &Aghaei, M. (2012). Business Ethics. International Journal of Scientific and Research Publications. 2(1), 1-4.

Sarmiento, R. (2023). Ethics Case – Top 10 unethical practices in the real estate industry. Robert G. Sarmiento website, Phillipines. Retrieved Feb 19, 2023 from http://www.robertgsarmiento.com/blog/ ethics-case-top-10-unethical-practice-real-estate-industry

Saxena, M. & Sharma, S. (2015). Peri-urban Area: A Review of Problems and Resolutions. International Journal of Engineering Research & Technology (IJERT). 4(9). DOI: https://doi.org/10.17577/IJERTV4IS090051

Schminke, M., Ambrose, M. & Miles, J. A. (1998). Ethical Frameworks: An Examination of Sex Differences, Setting and Accuracy Perceptions. Paper presented to the Academy of Management.

Shirina, S., Bhatia, R. &Agarawal, S. (2017). Ethical Practices in Indian Real Estate Industry. International Journal of Engineering and Management Research. 7 (3), 599-606.

Sidhartha. (August 29th, 2022). Real Estate Eyesores That Can’t Be Demolished. The Times of India, p.10, Retrieved Feb 19, 2023, from https://timesofindia.indiatimes.com/blogs/toi-edit-page/real-estate-eyesores-that-cant-be-demolished-twin-towers-may-be-dust-but-across-ncr-deliveries-are-still-delayed-shady-builders-still-rule/

Singer, P. (2021, February 2). Ethics. Encyclopedia Britannica. Retrieved Feb 19, 2023 from https:// www.britannica.com/topic/ethics-philosophy

Sinha, R. (3 May, 2022). Noida Land Scam, A Throwback – Part V. The Pioneer, Retrieved on Feb 15 from https://www.dailypioneer.com/2022/columnists/noida-land-scam--a-throwback---part-v.html

Sroka, W. &Lorinczy, M. (2015). The Perception of Ethics in Business: Analysis of Research Results. Procedia Economics and Finance, 34, 156-163. DOI: https://doi.org/10.1016/S2212-5671(15)01614-7

Sroka, W. &Szanto, R. (2018). Corporate Social Responsibility and Business Ethics in Controversial Sectors: Analysis of Research Results. Journal of Entrepreneurship, Management and Innovation (JEMI), 14 (3), 111-126. DOI:10.7341/20181435 DOI: https://doi.org/10.7341/20181435

Szczepańska, A., Wasilewicz-Pszczółkowska, M., Krzywnicka, I. & Senetra, A. (2017) Transformation of Rural Areas with High Urban Impact: The Example of the Largest Cities in the Warmiaand Mazury Region. Environmental Engineering 10th International Conference, Vilnius Gediminas Technical University, Lithuania , DOI: 10.3846/enviro.2017.121 DOI: https://doi.org/10.3846/enviro.2017.121

Tiwari, P. (2019). Dynamics of Peri-urban Areas of Indian Cities. International Journal of Engineering and Scientific Research. 10 (4), 131-141.