Source: Times of India
Dated: 6th June 2013
NEW DELHI: The government agencies such as the Delhi Development Authority (DDA) which are in construction of residential projects will have to be answerable to the real estate regulator if the houses delivered by them are not up to the mark.
“The provisions of the real estate regulation bill approved by the Union cabinet will apply to government agencies, including DDA,” said housing minister Ajay Maken. The legislation, likely to be placed before Parliament in the coming monsoon session, aims to promote fair-play in real estate transactions and introduce penal provisions for developers who do not stick to norms.
At present, there is no way homebuyers can voice their resentment against government agencies like the DDA, the Ghaziabad Development Authority or the NOIDA Authority that provide housing even if the material used is not of promised standards or delay in delivery.
The ambit of the proposed law is quite large and seeks to cover all major private residential developments across the country as the bill applies to all projects developed over 1,000 sq metres or the number of apartments proposed to be developed exceed 12.
However, Delhi has a peculiar problem as the builders are constructing on lesser area so will be out of ambit of the law. But Maken said the Delhi authorities can lower the criteria according to the need of the state. In Delhi, the urban development ministry will have the power to set up a real estate regulator since Delhi’s land comes under the DDA and L and DO, which are central agencies.
The bill, when enacted into a law, will ensure that home users get timely possession of properties. Besides, as per specifications promised the developer will have to disclose time schedule for the delivery along with layout plan and details of all statutory clearances obtained from the regulator ahead of launching of the project.
Maken, eyeing middle-class voters in urban areas for Congress, said, “The aim of the bill is to restore confidence of the public in the real estate sector which will enable the sector to access capital and financial markets essential for its long term growth.”
He was hopeful that states will implement the bill as 22 states have supported it. Only Chhattisgarh opposed the bill.