Get Annual plan at only Rs 289. Finance minister is contemplating to set up stress fund for various infrastructure sectors, including real estate and power, Mishra said at the 15th National Convention of NAREDCO - Housing for all 2022
As many as 44,000 cases have been registered with RERA out of which 23,000 have been disposed of and this is a big movement forward under the legislation, Housing and Urban Affairs Secretary Durga Shankar Mishra said on August 19.
The government may also consider amendments in the real estate law RERA, if required, to make it more effective, he said at the 15th National Convention of NAREDCO - Housing for all 2022. This, he said, would benefit both homebuyers and real estate developers.
“Out of the 44,000 cases registered under RERA, at least 23,000 have been disposed of. This is a big movement forward under RERA. Some states are moving very fast while others are slow,” he said at the 15th National Convention of NAREDCO - Housing for all 2022.
Out these 23,000 cases, at least 10,000 are from Uttar Pradesh alone.
The MoHUA had organised several regional workshops for RERA. “We had received very valuable inputs at these workshops. Based on these inputs, we have felt that there is a need to bring about many changes in RERA Act. We will soon make relevant amendments in the law. We will initiate discussions again and make changes in the law wherever required to make it more effective,” he said.
“When we did regional workshops, we saw that some RERA authorities are active, some super active and some are not so. So, we have decided to encourage interaction among various RERA authorities at the regional level. Every state RERA authority can learn from the good work being done by MAHARERA. Regional forums have been established at many places and mutually consultative meetings have been held at many places,” he said.
He also said a platform containing information about all RERA orders is being developed for the benefit of buyers and builders and to ensure that different orders are not passed on similar issues.
“We have observed that often two RERAs in the same state have passed different orders on the same issue. There is no proper coordination or synergy right now. For this, we are developing a common platform that will provide information on all the judgments passed by the different RERA,” he said.
Finance ministry mulling stress fund for various sectors
Mishra also said the finance minister is contemplating to set up stress fund for various infrastructure sectors, including real estate and power.
Finance Minister Nirmala Sitharaman had already held consultations with various stakeholders, including industry, banks, homebuyers, real estate players and capital market participants, to firm up steps that could be taken to deal with problems being faced by them.
"As per my information, the discussion for stress fund is on in the Finance Ministry. The proposed stress fund will not be only for the real estate sector, but for other infrastructure sectors, including power," Mishra said.
He said talks are on to use a stress fund to deal with the financial difficulties being faced by various infrastructure segments.
Both homebuyers and industry bodies such as NAREDCO and CREDAI have been demanding the creation of stress fund to complete stuck projects.
500 suggestions received on Model Tenancy Act
On the progress of the Model Tenancy Act, Mishra said the draft has been posted on the website and so far 500 suggestions have been received.
"We will very soon approach the Cabinet for approval. Then the model law will be circulated among states," he added.
Mishra said most of the tenancy laws are in favour of the tenant, not the owner. As a result, flat owners do not want to let out their house. “Once all rent agreements are registered, there would be more confidence to rent out units and that would boost rental housing,” the secretary said and asked builders to consider putting their unsold flats on rent.
Speaking at the 15th National Convention of NAREDCO, Union Minister of Environment and Forests, Prakash Javedekar said his ministry intends to reduce the entire process of granting environmental clearances for real estate projects to 60 days in a few days.
“Average time taken to clear projects was 640 days. After we took over, we made processes so easy that now it takes only 108 days for a project to get environmental clearance,” he said.
The minister revealed his ministry is in the process of issuing standard conditions for every project such as wage recycling and water harvesting as per the size of the real estate project. And these conditions will not be more than 10.
“We are bringing about a regime change. We will introduce fewer conditions but ensure their fullest implementation. If need be, we will amend the law so that you get the ease of doing responsible business. Because freedom is never a one-way street,” the minister disclosed.
He said that the Union Environment Ministry is also in discussion with states to make the environmental process smooth and less time-consuming.
Earlier, Lok Sabha Speaker Om Birla asked real estate developers to deliver apartments to homebuyers on time without compromising on the quality, while stressing on the need to strengthen the sector for faster economic growth and employment generation.
Birla said the government's target to provide 'Housing for All' by 2022 will not be achieved without active participation from private developers.
"We need to strengthen the real estate sector if the country has to achieve faster economic growth. If we want to tackle unemployment in the country, then real estate is the biggest industry to provide employment opportunities," Birla said.
"You (private developers) should not compromise on the quality. Home should be delivered on time as per the commitment and agreed price," Birla said.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.
