Prime Minister Narendra Modi forms GoM to vet realty bill

NEW DELHI: The NDA government is treading carefully on the real estate bill, after it was forced to withdraw the land acquisition amendment bill. Prime Minister Narendra Modi has formed an informal group of ministers to examine the legislation and suggest changes that would be make it home buyer-friendly while protecting interests of the real estate industry.

The informal group, comprising urban development minister M Venkaiah Naidu, finances minister Arun Jaitley, law minister DV Sadananda Gowda, is examining the Real Estate (Development and Regulation) Bill and the report of Rajya Sabha select committee. According to sources, the group of ministers has also been asked to carefully examine the issues raised by the Opposition in the select panel.

The government is determined to push the bill in the forthcoming winter session of Parliament. The Congress has alleged that the Modi government had watered down the bill framed by the UPA government to favour the real estate industry at the cost of home buyers.

A senior official told ET, “the government has to take a political call on certain recommendations of the select committee. The GoM has discussed it and would make suggestions to the PM. The final call will be taken soon after which the urban development ministry would prepare a Cabinet note.”

One of the contentious issues is the clause which makes it mandatory for private developer to deposit 50 per cent of the amount realised from allottees in a separate account in a scheduled bank. The Congress has already accused the government of reducing the percentage from 70 per cent to 50 per cent. The bigger question is whether to include cost of land in the total project cost.

“The cost of land accounts for nearly 80 per cent of project cost. But if it is not included, then the government would be accused of playing into the hands of the industry,” said an official.

Dated: 6th October 2015
Source: Times of India

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