Housing Minister Venkaiah Naidu warns states against diluting real estate law
Amid reports of dilution of key provisions of the new real estate law by some states, union housing minister M Venkaiah Naidu, has cautioned that the law should be implemented in true spirit and nobody has the right to dilute the law passed by Parliament
Union Housing and Urban Poverty Alleviation Minister, M Venkaiah Naidu, on January 17, 2017, asked all states to implement the Real Estate (Regulation and Development) Act, at the earliest. Describing it as one of the most consumer-friendly laws and welcomed by all stakeholders, including buyers and sellers, he added that there was a lot of hope and expectations from people from this act, which should be fully functional from June 2017.
“I am sorry to note that a few states are still casual about this law and they have not yet notified the rules, which was to be done by October 2016,” he said, while addressing the Chief Secretaries (Housing) of the states and union territories. Naidu said he has read reports about the dilution of the some of the provisions of the law, by some of the states. “I hope that nobody does it, because the parliament has passed the law and it is binding on everybody. Nobody has the right to dilute the spirit of the law. Any compromise on the Act, will not be acceptable,” he said. He cautioned that public opinion about the law was ‘very strong’ and whoever tries to dilute it will face the public’s wrath.
Minister of state for Housing and Urban Poverty Alleviation (HUPA) Rao Inderjit Singh, said that the realty rules must be implemented retrospectively, so that those exploited in the past get a redressal mechanism. HUPA secretary, Nandita Chatterjee, clarified that no amendments to the Act would be considered at this stage, since full implementation of the Act would begin only in May, when the Real Estate Regulatory Authorities and Appellate Tribunals would become functional.
She also clarified that the minimum plot size of 500 sq metres proposed in the Act, for registration of projects with regulatory authorities, was arrived at after several rounds of discussions by the parliamentary committees and in the parliament and it cannot be altered now. Responding to the issue of excluding balconies from the definition of carpet area, it was explained that it posed no problems, as the costing could be accordingly informed to the buyers. Any expenditure incurred by the promoters on development of land, could be included as part of the cost of land, states were told, according to an official release.
The centre has notified the Act for the UTs without legislatures, while other UTs and states have to frame their own laws, using the central act as a template, without diluting its spirit.
Real Estate Rules have so far been notified for Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh, Delhi, Chandigarh, Andaman and Nicobar Islands, Dadra and Nager Haveli, Daman and Diu and Lakshadweep. Andhra Pradesh, Arunachal Pradesh, Chhattisgarh, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Mizoram, Rajasthan, Tamil Nadu and Puducherry, are expected to notify the Real Estate Rules, in February. Punjab and Uttarakhand have informed that the needful would be done, after the elections to their state assemblies.
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