Reddy: Action time

Mumbai, Sept. 27: The Centre has chalked out a plan to form a separate regulatory body for the real estate industry.

Union minister for urban development S. Jaipal Reddy said the regulator would stop fraudulent and unfair trade practices and deal with a range of issues relating to consumers and developers with greater transparency.

“For quite some time now, we have been planning to form a separate quasi judicial body for seamless governance of the real estate sector in India,” he said.

According to the minister, land policies are complex and it often becomes difficult for buyers to understand the rules.

This makes the buyers gullible victims of builders and developers.

“Since real estate and construction are not on our priority list in the Eleventh Plan, we have to address the issue through a separate regulatory body,” Reddy said.

“The final decision on the regulatory body will be taken within six months,” he added.

The minister said Delhi would be the first state to form such a body. Other states will then follow suit.

While voicing concern about the demand-supply gap in real estate, Reddy stressed the need to scrap the Urban Land Ceiling Act to provide affordable housing to urban dwellers.

Reddy said the Andhra Pradesh government had agreed to scrap the act by the end of this financial year.

Maharashtra and Bengal would also scrap the legislation, he added.

Under the Eleventh Plan, the government has raised Rs 50,000 crore to meet the increasing demand for housing and infrastructure in urban areas.

It has also decided to increase its investment in public transport.