Real estate developers have sought inclusion of “force majeure” provisions in the proposed real estate bill drafted by the Central Government. The developers’ associations — Confederation of Real Estate Developers’ Associations of India (CREDAI) and National Real Estate Development Council (NAREDCO) — raised their concerns over the provisions of the bill in a one-day consultation process held by the housing and poverty alleviation ministry in the Capital on Wednesday, Jan 11.
While admitting that “differences in opinion” exist between stakeholders over the precise modalities of the regulation, Minister for Housing and Urban Poverty Alleviation (HUPA) Kumari Selja said majority have endorsed the need for a regulator.
The Bill provides for the establishment of a state regulatory authority and bring transparency by enforcing mandatory public disclosure, standardisation and fair practices.
“While the sector has grown rapidly in recent years, much of this growth has been unregulated, with complaints of malpractices and lack of proper accountability on the part of builders and developers. The absence of standardisation and professionalism has also constrained the orderly development of the industry,” Selja said.
Developers sought fast track approval for projects and suggested that the constitution of the Authority may be broad based to take care of the interests of all stake-holders.
Consumer forums recommended inclusion of brokers and agents into the regulatory network.
“There were requests for reduction in the upper limit of the area from current 4,000 sq mtrs or specify the number of minimum units being constructed beyond which registration becomes essential. Inclusion of force majeure provisions were also sought by the developers,” said a HUPA spokesperson.
