The Real Estate (Regulation and Development) Bill, 2013, is a long overdue measure to control the real estate business. Once Parliament passes it, there will be a regulatory authority that will introduce a measure of transparency in the sector and also a mechanism to settle disputes. The real estate sector has been witnessing unprecedented growth, as evidenced by the hectic construction work going on in all the urban centres in India. Yet, it is one of the least regulated sectors allowing anyone with some resources, questionable or otherwise, to start a company. Umpteen have been duped by companies which promise a mountain but deliver a molehill.
With more and more people migrating to urban areas, the demand for houses in cities and towns has been mounting. Since the state governments take their own sweet time to allow changes in land use, those desiring to have their own houses wait inordinately or pay through the nose to expedite the process. Real estate firms exploit the opaqueness of government policy to charge exorbitantly from customers. Also, the strict rules for the floor-space index — the ratio between the built-up area and the plot size — in New Delhi, for instance, militate against the construction of houses. There must be rules to provide for wide roads and adequate parking space but the overall aim should not be to discourage construction.
In cities like Mumbai, where vertical growth alone is possible, the height of the building should be decided by flight safety and the parking area available to the residents. The bill has been drafted on the ground that housing is in the concurrent list of the constitution. It will be effective only if the states also pass laws that supplement the central law. The regulatory authority should be able to control not only government agencies but also all the private builders, who invariably keep their customers on tenterhooks. The ultimate objective should be to make acquisition of houses easier for those who need them.
