Developers are now at risk of facing substantial fines if they fail to reserve 15% of the space in their housing projects for the Economically Weaker Sections (EWS). The housing ministry has urged states to enforce strict measures against builders who breach these EWS reservation rules. Continuing to disregard this policy may lead to the government reclaiming the land allocated for such projects, according to ministry sources.
A senior official from the housing ministry emphasized, "It is UPA government’s policy to provide housing to the weaker sections of the society, and non-compliance will result in tough action from the government. Builders cannot go against the National Housing and Habitat Policy, which has made it mandatory for them to set aside at least 10% for EWS construction."
The regulations stipulate that at least 15% of land in housing ventures or a 20% Floor Area Ratio (FAR)—whichever is greater—must be allocated specifically for EWS or Low-Income Group (LIG) housing. The central government has taken a serious stance regarding the violations of EWS norms particularly noted in states like Karnataka, Delhi, and Uttar Pradesh. Consequently, it has directed these states to ensure stringent enforcement of the reservation requirements.
Further officials expressed that city municipal authorities would not allow developers to market their buildings or apartments unless their construction plans accommodate provisions for impoverished segments of society. In addition to fulfilling EWS obligations, builders must also secure necessary building bye-laws and layout clearances from licensed architects before they can promote their properties.
Alongside the push for mandatory EWS housing, the ministry has requested the finance ministry to instruct nationalized banks to offer EWS families loans at reduced interest rates for their home purchases. The proposed adjustments indicate that low-income households should ideally be charged about 5% less than the prevailing market rates.