In a significant move to resolve the long-stalled Real Estate Regulatory Authority Bill, the Prime Minister’s Office (PMO) has stepped in, directing both the Ministry for Housing and Urban Poverty Alleviation (MHUPA) and the Ministry for Urban Development to address their differences and implement the pending legislation without further delay.
Pending Real Estate Regulatory Authority Bill sped by PMO.
The delay in the implementation of the Real Estate Regulatory Authority Bill has primarily stemmed from disagreements between MHUPA and the Ministry for Urban Development. Following directives from the PMO, these ministries have been urged to resolve their disputes swiftly and facilitate the bill's passage.
The Real Estate Regulatory Authority Bill was initiated by MHUPA to safeguard property buyers against deceptive practices frequently employed by developers. This critical legislation had already been submitted to the Cabinet for clearance.
However, the Ministry for Urban Development countered MHUPA's initiative, claiming jurisdiction over the matter and proposing an alternative bill. Urban Development Minister Kamal Nath communicated this position through a letter addressed to the PMO.
Real Estate Regulatory Authority Bill given more pace by PMO.
Under pressure from the PMO, representatives from both ministries convened with delegates from various real estate developers’ associations and some industry stakeholders. The meeting was overseen by Ajay Maken of MHUPA and Kamal Nath from the Urban Development Ministry, and included participants from groups such as CREDAI and the National Real Estate Development Council, alongside representatives of the Confederation of Indian Industries and the Federation of Indian Chambers of Commerce and Industry.
An official from the housing ministry indicated that they have requested input from real estate developers’ associations, which will be taken into account in further consultations. The ministry is eager to finalize the Real Estate Regulatory Authority Bill and present it to Parliament during the upcoming Budget session.
Nonetheless, real estate builders have raised concerns about the establishment of a regulatory authority that could adversely affect their interests. This proposed regulatory authority would require builders to register all projects exceeding 1000 square meters. Failure to register could lead to severe consequences, including a maximum prison sentence of three years or a financial penalty of up to 10% of the total project cost. Builders would also be restricted from advertising their projects unless they have registered with the regulator.