Real estate bill to be regulation not strangulation: Naidu

New Delhi: Regulation in real estate is the need of the hour as certain incidents have impacted the image of the sector "negatively" but the bill in this regard will not create any over-regulation, Housing and Poverty Alleviation Minister Venkaiah Naidu today said.

 

He assured that the Bill will provide necessary transparency and fair play in the real estate transactions.

 

"It will not be any strangulation but a regulation only," he said at a consultation meeting here on the single window approval systems and Real Estate (Regulation and Development) Bill 2013 which was attended by all stakeholders including developers and officials from other ministries.

 

"In recent time, price escalation of land and building materials have made houses increasingly unaffordable for the urban poor. Over and above, failure on the part of some unprofessional and unorganised developers in fulfilling commitments of delivery to the buyers in terms of time and quality has created mistrust among the developers and buyers," he said.

 

The bill aims to spur growth in the housing sector and is crucial for the government as it has promised to provide houses for all by 2022.

 

Government intends to bring the Bill in the Winter Session of Parliament.

 

"Before bringing it to the House we want suggestions from all concerned before taking it further as there are certain apprehensions about the Bill," Naidu said.

 

Thirty-two percent of the country's population are residing in urban areas and it is estimated to reach 50 percent by next 20 years.

 

Seeking private participation in the housing sector, Naidu said government cannot do it alone and private players have to participate to provide houses for all.

 

The rapid urbanisation has created huge gaps in urban housing and there is a shortage of 18 million housing units in urban areas out of which 95 percent pertains to economic weaker section and low income groups.

 

Naidu said it is the government's duty to provide housing facilities to all and to overcome this acute shortage, it is launching "Housing for all" mission shortly.

 

The proposed Bill is expected to provide consumer protection, transparency, fair and ethical business practices in matters relating to sale and purchase of properties.

 

Naidu said it will bring standardisation in the sector by defining terms like apartment, carpet area and advertisement. 

 

Source:http://zeenews.india.com/business/realestate/latest-news/taxation-regulatory-issues-may-trip-reits-success-kpmg-ivca_108616.html