Moneylife Events
India need regulatory guidelines for Retirement Homes, finds Study conducted by Moneylife Foundation for HDFC
The first ever study on retirement homes in India, done by Moneylife Foundation, reveals a huge potential for this growing sector. At the same time, there is a need for appropriate oversight, standards of infrastructure and service and grievance redress measures. 
 
The Retirement Homes report was released on Friday by BN Makhija, retired IAS officer and Chairman of GuideStar India, in the presence of senior citizens and activists. The study was conducted with the support of Housing Development Finance Corp Ltd (HDFC) as part of its corporate social responsibility initiative. The release was timed to mark World Elder Abuse Awareness Day, observed on 15th June. 
 
 
Says Mr Makhija, "The demand for retirement homes is there, it is growing and so this report is appropriate and timely. There are three reasons why people go to retirement homes: the company of people of similar age, care and safety offered by these places. People are willing and the resources are available, but now people want options. This is the right time to take up the issue of regulation in this segment and I will be happy to be associated with this project.”
 
India is a young country, but a growing population of older persons (8.94% of the Indian population today) has created a niche market for retirement homes that cater to the needs of fairly affluent Indians who no longer want to be burdened with running a home and want to live with people who have similar background and interests.
 
 
Sharing the findings from the report, Sucheta Dalal, Founder-Trustee, Moneylife Foundation, said, “The Study has thrown up a range of issues that seniors can expect to face over time -- starting with minor irritants such as service quality and maintenance to more serious issues such as forceful eviction, denial of services, substandard services and dealing with cost escalation. The need for regulation is underlined by a court case in the Tamil Nadu High Court that highlighted the travails of the senior citizens living in retirement home in Coimbatore.”
 
Moneylife Foundation also conducted an online survey of those living in retirement homes to get first-hand information from residents and gauge their level of awareness about the facilities and future. The survey threw up some startling findings.
 
 
According to the survey, out of the 340 respondents nearly 65% had not signed a contractual agreement which clearly outlines terms of service and their rights. Shockingly, over 62% were unaware about the cost and procedures involved in terminating their deal with the retirement home and its costs. 
 
Highlighting lack of regulation of retirement homes or retirement communities in India, Debashis Basu, Founder-Trustee of Moneylife Foundation, said, “There are two models that have developed -- an ownership model and a rental model. Both have good and bad examples. The question is what kind of regulation, supervision and structure will ensure a safe and viable retirement for senior citizens?”
 
 
Although realty is a state subject, the process of granting clearances to set up retirement homes and townships needs to have a national regulatory framework, preferably through an act, overseen by the Ministry of Social Justice and Empowerment. 
 
“The Ministry should ensure that every retirement home and its management agency is required to file details of its agreements, amenities, terms and conditions of service according to the model and structure under which they are set up and operate. The Ministry should also ensure that details of licenses, sanctions, permissions and terms and conditions of Retirement Homes are uploaded
on the Ministry website (as in the Real Estate Regulation Act),” the Report says in its recommendations.
 
 
Talking about the Report, Sailesh Misra from the Silver Innings Foundation, said the release of the report is just the beginning. “We need to change our mindsets. Seniors opting for retirement homes do not want pity but good services. This is because retirement homes are for the affluent class who can afford them. However, when we talk about elder care, there is a need for all of us to become service providers with holistic angles. Regulatory guidelines or frameworks are the right step in this direction,” he added. 
 
Retirement homes are popular in most developed countries such as the US, Canada, Japan, and New Zealand. While there may be a few differences in the structure and facilities offered by these homes, what they have in common is the fact that the governments of these countries extend support, incentives and facilities for retirement homes. Each of these countries has also put in place appropriate regulatory guidelines covering the structure, management and operations of such facilities.
 
 
According to the findings from the study, unless the government puts in place proper regulation, licensing, supervision and grievance redress mechanism with a clear administrative ministry,  examples like that of Coimbatore are bound to have an impact on the growth of the retirement homes segment, which otherwise have great potential in India.
 
You may also want to read…
 
 
 
 
 

User

COMMENTS

Sandip Kishore

6 days ago

Rightly said it is SAD our Law enforcement authorities DO not play their role rigidly; even after Court injunction is obtained, when results are not forthcoming within a stipulated time, the accused MUST be punished / fined severely; NOT done now - police take back
seat saying party is pursuing court case etc, without verifying DATA completely; PITY;
Violation / Delay on part of authorities OR by accused should be dealt with strong and speedily ; only way to ensure redressal of grievances by elders whose term is "limited" !
Action being taken IS often told, BUT in practices NOT found moving a bit - Strange eh !

R. NARAYAN

7 days ago

Mr Suchindranath Iyer's practical comment appears valid. The Tamil Nadu Govt Order No. 83 issued by the Social Welfare & NMP Dept came into force on 23rd Nov 2016. It is over 200 days since the Govt Order came into force but the Promoters of senior citizen Homes are refusing to comply with the Order as they fear that their ability to further 'exploit' the senior citizens shall come to an end if they show Compliance to the G.O. The Secretary of the Regulatory Authority is the District Social Welfare Officer [DSWO] and she is also the Nodal Officer empowered to redress the grievances of Senior Citizens living in such homes. Despite our written complaints, the DSWO has NOT been able to redress a single grievance, so far. She expresses her lack of pwer and inability to bring the Promoters to comply with the Govt. Order. Same is inaction can be seen with the Police, Revenue and other authorities in the District upon whom a duty is cast to protect the security and property of Senior Citizens living in such Homes vide the G.O. Thus the issue of making the Promoters of such Senior Citizen Homes to become Compliant to the Govt Order. is the next level of our continuing struggle. The matter has been escalated to the Hon. District Collector who is the Chairman of the Regulatory Authority, the Director Social Welfare Tamil Nadu Govt., the Principal Secretary, Social Welfare & NMP Dept TN Govt, the PMO cell and we continue to knock at the doors of the every authority hoping that someone would wake up to ur plea and perform their duty towards senior citizens of the state. Hopefully the errant Promoters will be tamed by the senistization of the state level, quasi judicial law-enforcing authorities to the salient clauses in the G.O. resulting in the 'Rule of Law' being eventually implemented, in letter & spirit.

SuchindranathAiyerS

1 week ago

The assumption that regulation works in a corrupt India sans dependable Police and Judiciary is a facile one.

Nifty, Sensex to move sideways – Weekly closing report

We had mentioned in last week’s closing report that Nifty, Sensex were showing no signs of tiring. The major indices of the Indian stock markets suffered a minor correction during the week and closed with small losses over last Friday’s close. The trends of the major indices in the course of the week’s trading are given in the table below:

Weak global cues and caution ahead of major domestic macro-data release pulled the Indian equity markets lower during the mid-afternoon trade session on Monday. According to market observers, investors were cautious ahead of the meeting between Finance Minister Arun Jaitley and top executives of public sector banks on the sector's non-performing assets (NPAs) issue, as well as the release of Index of Industrial Production (IIP) and Consumer Price Index (CPI) data later in the evening. On the NSE, there were 482 advances, 987 declines and 51 unchanged.

 
India's steel exports jumped by 69% in May to 0.641 million tonnes (mt) over the same month last year while imports were up by 2.4%, according to a Steel Ministry report. "Export of total finished steel was up by 102% in April-May 2017 to 1.387 mt over same period last year. Overall export in May at 0.641 mt was down by 14.1% over April 2017 but was up by 69% over May 2016," said the Joint Plant Committee report. India's consumption of total finished steel at 13.785 mt saw a growth of 4.2% in the first two months of the current fiscal over year-ago period, under the influence of rising production for sale. In the last month, overall consumption stood at 7.491 mt, up by 1% over corresponding month last year. In May, production for sale of total finished steel at 9.066 mt, registered a growth of 4.4% over the corresponding month last year. The production was, however, up by 7% over April 2017. Shares of Steel Authority closed at Rs57.20, down 0.61% on the BSE. Shares of Tata Steel closed at Rs507.35, up 0.21% on the BSE.
 
Shrugging off the previous day's losses, the Indian equity markets on Tuesday traded in the green on the back of firm global cues, broadly positive domestic macro-economic data and healthy buying in capital goods, banking and consumer durables stocks. According to the data released by the Central Statistics Office (CSO) after-market hours on Monday, India's annual retail inflation (Consumer Price Index) eased to a record low of 2.18% in May 2017, and the factory output growth (Index of Industrial Production) marginally slowed to 3.1% in April 2017. This, according to market analysts, provided a boost to the key equity indices. On the NSE, there were 698 advances, 700 declines and 47 unchanged.
 
Drug major Sun Pharmaceutical Industries on Tuesday announced that one of its wholly owned subsidiaries has received final approval from the US Food and Drug Administration (USFDA) for its generic version of ezetimibe tablets. According to Sun Pharma, the generic ezetimibe tablets -- used to reduce higher levels of cholesterol -- are therapeutic equivalents of Merck's Zetia tablets. "As per IMS, ezetimibe tablets had annual sales of approximately $2.7 billion in the US for the 12 months (which) ended April 2017," the drug major said in a regulatory filing to the BSE. The company’s shares closed at Rs536.45, up 0.62% on the BSE.
 
Lending major State Bank of India (SBI) said that its paid-up capital has increased to Rs863.20 crore after its recent share placement through QIP. "Pursuant to the allotment of equity shares in the issue, the paid-up equity share capital of the bank increased from Rs810,98,57,182 to Rs863,20,50,393 comprising 863,20,50,363 equity shares of face value of Re1 each," the company informed the BSE in a regulatory filing. Last week, the lending major had allotted more than 52 crore shares of face value of Re1 each at a price of Rs287.25 per equity share aggregating to Rs14,999 crore to 61 "successful eligible investors". SBI shares closed at Rs283.80, down 0.44% on the BSE.
 
The Indian equity markets on Wednesday closed on a flat-to-positive note on the back of healthy wholesale price index (WPI) data and buying in capital goods, oil and gas as well as energy stocks. Official data released during market hours showed that India's annual rate of inflation based on wholesale prices decelerated in May to 2.17% from 3.85% in April as food prices eased. However, investors remained cautious ahead of the outcome of two-day US Federal Reserve's rate-setting meet later in the evening. On the NSE, there were 662 advances, 793 declines and 64 unchanged.
 
Telecom major Reliance Communications (RCom) Chairman Anil Ambani voluntarily decided to forego his salary and commission from the company during the current financial year as part of its "strategic transformation programme", RCom announced on Wednesday. Reliance Group Chairman Anil D. Ambani voluntarily decided to draw no salary or commission from RCom in the current financial year. The decision was part of the company promoters' commitment to the Strategic Transformation Program, the RCom release said. The company’s shares closed at Rs18.30, up 1.39% on the BSE.
 
Following their global peers, the Indian equity markets fell during the mid-afternoon session on Thursday, a day after the US Federal Reserve hiked its benchmark rates. The rate-hike assumes significance as it is expected to lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India, and is also expected to dent business margins as access to capital from the US will become expensive. Consequent to the late-night US rate hike, the Asian markets traded broadly in the red and eroded Indian investors' confidence in the highly expensive conditions in the domestic stock markets. Selling pressure was witnessed in banking, oil and gas and capital goods stocks. On the NSE, there were 837 advances, 805 declines and 311 unchanged.
 
The US Federal Reserve raised its benchmark interest rates for the third time since December and unveiled plans to start trimming its balance sheet, even as news of the Fed's relatively hawkish stance provoked caution in early trading in the Indian equity markets, which were trading flat on Thursday morning. "In view of realised and expected labour market conditions and inflation, the FOMC (Federal Open Market Committee) decided to raise the target range for the federal funds rate to 1% to 1.25%," the American central bank said in a statement after concluding its two-day monetary policy meeting. This rate was a 25 basis points increase over the current one of 0.91%.
 
The Indian equity markets traded on a flat-to-positive note during the mid-afternoon session on Friday, with buying witnessed in consumer durables, FMCG (fast moving consumer goods) and banking stocks. According to market observers, weak global cues and selling in healthcare stocks eroded investors' risk-taking appetite. At the close of trading, the major indices ended flat over Thursday’s close. Bank Nifty closed with small gains over Thursday’s close.
 

User

No plan to issue next list of defaulters any time soon: RBI
Following the Reserve Bank of India (RBI) identifying 12 accounts that are responsible for 25 per cent of non-performing assets (NPAs), the central bank on Friday said it has no plans to come out with a next list any time soon.
 
"If you look at it (NPAs), RBI had a detailed circular. Twelve cases have been referred for resolution by Insolvency and Bankruptcy Code (IBC). Other (bad loan) cases, banks are encouraged to resolve in six months' time," RBI Deputy Governor S.S. Mundra said.
 
"Where is the question of quickly coming out with the second list," he said.
 
Mundra was speaking on the sidelines of the 3rd national summit -- Bankers Borrowers Business Meet 2017 -- organised here by the Associated Chambers of Commerce and Industry of India (Assocham).
 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)