Government plans State level Regulators for real estate
Mumbai - The UPA government has announced its plans to help states to setup regulators for the real estate sector. Mr. S. Jaipal Reddy, Urban Development Minister said that the regulation at state level is essential. The real estate sector has seen a decent growth in last 3 years. With the prices of real estate going up all over the country, there is a strong need for regulation in the sector.
Regulation in the real estate sector will offer protection to consumers and builders. The plan is to start with big cities first and then to get into tier-2 cities.
Mr. Reddy was in Mumbai to attend Real Estate Summit. He said, "A quasi-judicial regulator is required in big cities as both consumers and builders may need protection. We will set up the body in Delhi first as a model structure. We will request all states to follow that model."
Many a times, consumers feel cheated while buying home or property. The most common issues are the floor area, price charged and the documentation of land ownership. In recent times, there have been long delays from builders and consumers have to face lot of difficulties. Builders also face many bottlenecks while acquiring land for their projects and later developments and getting no objection certificates from authorities.
Mr. Reddy further said, "Land is a state subject so there can not be an all-India authority. But we will encourage this plan while giving assistance to state governments under Jawaharlal Nehru Urban Renewal Mission."
Mr. Reddy said that the UPA Government is also considering increased grant of up to 30-35% of total cost for public transportation project compared to current 20%.