Builders and scams.

THIS refers to the news 'One Constitution Avenue owner files contempt plea against Public Accounts Committee' (April 22). Increasing population in urban areas, higher real estate prices and increasing costs associated with urban sprawl is going to force more and more people to go for apartments rather than houses. Therefore, it is time for the authorities to take steps to regulate this particular segment of the real estate market in the country.

We can learn from other countries where apartment or condominium living started to become a norm after the increase in urbanisation after World War II. Such countries have very strict rules related to the timing of marketing a project. For example, a developer cannot start marketing a project until the land is fully paid for and the building plan has been approved by the relevant land zoning authorities.

There are strict laws outlining how a builder can collect funds from banks and individual purchasers. Typically, these funds are held in an escrow account, and are only released based on project progress. The builders are fined heavily if they are unable to provide the facilities...