NEW DELHI: The government on Tuesday warned the developers with “strictest” possible action if they take consumers “for a ride” even as it sought to allay their fears over the proposed Real Estate Regulatory Authority, saying it would be regulation and not “strangulation”.
Minister for Urban Development, Housing and Poverty Alleviation M Venkaiah Naidu said the Real Estate Bill, which was passed by Parliament, was notified on May 1 and now requires the state government to make model rules and set up a Real Estate Regulatory Authority.
“We have received thousands of emails and messages from across the country, from Gurgaon, Nodia (about consumers getting cheated by real estate developers),” Naidu said in the Lok Sabha during his reply to a debate on Demand of Grants for his ministry which was later passed by the House.
Without taking the name of M S Dhoni, he appeared to refer to him as he said “certain cricketer” had appeared in an advertisement for a real estate developer. Consumers are being cheated by “fly-by-night operators”, the Minister said, adding “I would like to warn (real estate developers) with strictest action…. They should not take consumers for a ride.”
At the same time, he said, “I would also like to tell the builders that the passage of the (real estate) bill does not mean strangulation, but it is a regulation.” He also said it is the states which should now make “Model Rules” and appoint a regulatory authority and that the state government should also notify it by October 30.
With regard to queries raised by several MPs over the allocation of funds to the ministry and different programmes under it, Naidu said even he was not “happy” with it as the projects require huge investments. The HUPA minister said he was pursuing the matter with Finance Minister Arun Jaitley but was aware of the limited resources.
He also sought to dispel the notion that he favoured certain states with regard to proposals, saying it is the states which are supposed to come up with a proposal of project under the Pradhan Mantri Awas Yojana. “It is the state government that has to send proposals. We have not made a single change in proposal. There is no question of discrimination,” Naidu said while noting that Karnataka’s proposal came late, still it was approved.
In last six months, some 83,000 houses have been approved, he said. Under the PMAY Housing-for-all by 2022 scheme, Naidu said it is the state governments which should look into the beneficiaries and land matters. “A decent house for essential living is the fundamental right. I can only sanction money, but the land has to be provided by the state,” Naidu said.
The minister said the government is also providing an interest-free loan and noted that the property will be registered in the name of the female members as the “male members sometimes go anywhere”. To give a boost to the sector, the Centre has given several tax sops.
Sushmita Dev (Congress) said Prime Minister Narendra Modi was unhappy that the work done and the government schemes were not reaching into the ears of the people. “The Prime Minister’s propaganda work is proving to be counter productive. The local BJP activists have told people that the government will give a house to everyone by 2022.
“But there are several aspects into it like availability of land, involvement of private sector into it and capacity of an individual to pay the loan which the government is offering at the rate of 6.5 per cent,” the Silchar MP said.
Credits ET Realty