More than necessity, it’s a new dream that is most often life’s biggest driver. Running around sites across three metros and monitoring increase of business volume have truly come as unpredictable to Ani Ray as has been his metamorphosis into an accomplished real estate-and-construction magnate. Given his middle-class background, a well-paid job should have kept the man from Kolkata contended. But Ani Ray (49) turned new pages, donned an entrepreneurial hat and launched the Indian chapter of the Arabian Construction Company with support and guidance of his Lebanese friend Rasheed Mikati. After Burf Khalifa, the A.C.C. is creating the 117-storey World One – to be India’s tallest building – in Mumbai.
On a visit to Delhi, Ray spoke to Special Correspondent Nirendra Dev.
Q. What’s India’s real-estate scene? As someone with considerable experience in the Gulf and now operating in this country, how would you assess the emerging market?
A. A long-awaited reform has come in the form of the Real Estate (Regulation and Development) Act. It’s path-breaking and a game changer. The good part of the legislation is that henceforward fly-by-night operators cannot survive. Drawing money from one head and putting it into another domain for investment would not go on for long. In other words, ‘iski topi uske sar’ will not work. The commoner shall benefit because – for the majority of buyers – purchasing a dwelling is life’s most substantial investment.
Q. So you say it would help the end consumer?
A. Certainly. People will be much more relieved. Now they have an authority to which they can complain. The only thing I want to stress here is that it has to be ratified by states without much dilution. Another crucial thing – I’ve been mentioning that the real-estate players, other stakeholders and builders need to be cautious as – unless they mend their ways – many dealers will have to pull down their shutters as happened when such a law was enforced in 2009 in Dubai. Numerous real-estate companies couldn’t cope up. The Indian equivalent is based on the Dubai and American models; nothing wrong.
Q. Was the Dubai impact major?
A. More than 100 were closed – a lot of them because they were ill-equipped. Importantly, that trepidation exists in India also. Enterprises that are organised and cash-rich shall survive. More importantly, buyers will be benefitted and the whole industry will be healthy.
Q. How would you assess the industry’s response to R.E.R.A.? What about the states?
A. The Maharashtra regime has already introduced it and other states are in the process. Until now, our country’s real-estate sector had no structure. This Act will definitely professionalise everybody – and sans choice. As I see it, it is good for builders, contractors, authorities and the beneficiary is the common man and the end user or the buyer.
Q. Against this backdrop, you agree that R.E.R.A. will help in ease of doing business?
A. That's true. We are a Gulf-based company and came to India recently. As an Indian, I am keen to push my company deeper and efforts are on to spread the footprint to various states and also want to enter the government sector. However, there is profusion of basic differences in working style and approaches - especially in the construction sphere - between the Gulf Cooperation Council countries and this nation. That is why the bulk of projects here take at least more than one-and-a-half times the period required in Dubai. There are a large amount of obstacles in India. Things are not finalised easily. Even planning and clearance come in phases. Generally, Indians like to work in that manner. But in the Gulf they follow the British pattern, there is a fixed process. It's quicker.
Q. Another problem in Indian operations perhaps is that we are not pro-change. The country usually seems to prefer status quo. You concur?
A. To a great extent, what you are expressing is right. In my state, entrepreneurship is typically frowned on. People would say - what is the necessity? We are shy of taking risks.
Q. That's a very candid analysis. So, as a businessman you still find our working and business atmosphere not encouraging enough?
A. A good question that I will answer differently. As real estate in India is essentially a state-government and municipality- related subject, the lion's share of states require to ratify R.E.R.A. I am emphasising this because in some states lobbies would be working to delay it. But in the broader interest of the sector, consumers' interest and overall transparency in the system, the legislation is essential. When the real estate regulation law came in Dubai, there were lobbies opposing it. As for functioning in the public sector in India, look, I don't mind operating with states and some central agencies but dealing with a private builder is always easier because there is a single decision-maker or a director. In government, you require to handle multiple players. We did not have the footprint to tackle government organisations. The A.C.C. commenced work in India in 2012. We have done a few projects and we are confident that we are capable of doing government ones. But it is encouraging that government agencies are now in the direction of improving themselves.
Q. How would you sum up India’s overall economic situation, some of the new steps that the Modi regime has tried to take?
A. Recently, I had an extremely good meeting with the Prime Minister. The Modi era has brought in some exceedingly significant and positive changes. No country has moved ahead in the absence of nationalism. Suddenly, Indians’ morale is quite high. There may be fringe domestic controversies but generally people outside are tremendously upbeat.
Q. Are you not making a political statement, considering the kind of criticism the Premier attracts in Indian media and also from opposition parties?
A. Absolutely not! I have nothing to do with politics. But the alterations we perceive ought to be highlighted in proper perspective. For any nation to prosper, people have to be self-confident. They have to be proud therefore a bit of nationalism is always good. At least with a segment of Indians this feeling is fairly elevated. I have never discerned this among overseas Indians earlier. Expatriates are feeling self-assured – even in the Gulf and other places. To give you a specific example, recently the Prime Minister went to the U.A.E.; even oil company headquarters had our flag and there were L.E.D. displays of the banner. Never before has any Indian head of state got that type of reception.
Q. What else appears to be changing?
A. The mindset. Mr. Modi has fired the common imagination. We used to think parochial, like this state is doing well or that state has to do well. Or else, we used to blame the system and at times feel frustrated – ‘nothing is going to happen’. Some are still condemning the system. The old habit would not go quickly but the greatest thing is there are lights showing up not far and lot many ministers and other higher-ups are from a common background, this is giving hope. They are not there because of their father or from elite institutes. If I notice somebody from a milieu similar to mine holding high position that obviously influences me positively. But if I see that chair always occupied by a person having ‘blue blood’ or some kind of heredity, it is a negative factor.
Q. In the course of your interaction with the Premier you also discussed low-cost housing?
A. The Centre’s low-cost accommodation programme seems to be on track as the Prime Minister is well-informed about the subject. Unlike droves of political-class members and even administrative officials, he is au courant about things he wants to do and understands that such abodes do not imply inexpensive technology. This fact helps because one needs to pump in initial money for tech, which will pay good returns in the medium term itself and big benefits in long term. An economical residence would not come out of air.