Realty bill: consumers seek lower cap on project area

12 Jan 2012

In a government-sponsored discussion on the proposed bill for a real estate regulator, consumer organisations said brokers and agents should be included in the ambit of the real estate (development and regulation) bill; while land developers sought provisions for fast-tracking project approvals.

During the one-day seminar organised by the ministry of housing and urban poverty alleviation in New Delhi on Wednesday, consumer outfits also sought lowering of the limit on the project area to less than the proposed 4,000 sq m.

The real estate industry, represented by the Confederation of Real Estate Developers' Associations of India (CREDAI) and the National Real Estate Development Council (NAREDCO), sought a force majeure clause in the bill, which would protect them from responsibility in case of natural disasters, wars, and so on.

Inaugurating the meeting, housing and urban poverty alleviation minister Kumari Selja said the bill attempts to balance the interests of consumers and developers by imposing certain clear responsibilities on both.

She said the proposed regulator will seek to enforce public disclosure and bring in much-needed transparency and accountability, while ensuring an enabling environment.

The bill also attempts at building investor and client confidence. Along with mandatory public disclosure, the fast-track dispute resolution mechanism is expected to speed up delivery of justice, which would further augment credibility and facilitate larger investments in this sector in the long run, she said.