Fitting the Bill

The Real Estate (Regulation and Development) Bill, meant to introduce transparency in real estate dealings and protect property buyers, is hanging fire.

The passing of the Real Estate (Regulation and Development) Bill will see establishment of regulatory bodies at Sate and Central levels.

The Real Estate (Regulation and Development) Bill continues to hang fire and is likely to be brought in during the coming session of Parliament in February after it was deferred during the winter session.

With the National Democratic Alliance (NDA) government’s focus on affordable housing and housing for the economically weaker sections in the country, the Union Housing Ministry is learnt to have been asked to introduce changes in the proposed Bill to include provisions to take care of these concerns.

The government has set itself the target of providing housing for all by the year 2022.

Affordability is a key concern for the government as price of property continues to rise in the country, especially in urban areas, despite a lack of perceivable buoyancy in the market.

The Real Estate Bill is meant to introduce transparency in real estate dealings and provide protection to property buyers by imposing certain conditions on what is now an unregulated sector. The passing of the Bill will also see establishment of regulatory bodies at the State and Central levels, making it possible to get grievances addressed through established and institutionalised process.

Ordinance

At the same time, the recent Ordinance amending the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, is among the factors that are expected to give a boost to real property development activities in the country during the year.

Union Minister for Urban Development Venkaiah Naidu had told the Vibrant Gujarat summit in Gandhi Nagar recently that the Ordinance on land acquisition would reduce transactional and opportunity cost. He also claimed that the interests of the land owners would be protected.

The Minister put the new developments in the context of the government’s decision to improve urban conditions of living and build crucial infrastructure.

Mr. Naidu underscored the fact that 31 per cent of the Indian population — about 377 million — lived in the urban areas, which accounted for 63 per cent of the Gross Domestic Product (GDP).