Regulator without power to keep home prices low

“There is a need for a regulator in the housing sector and we are making efforts to move the bill in the monsoon session,” Minister of State for Housing Sachin Ahir said. “People have no alternative but to move court if something goes wrong. Our aim is to provide an entity that could be approached by any aggrieved person and also to streamline things in the housing sector. Our primary aim is to protect the interests of flat buyers.”

He admitted the move to establish the regulator was being delayed. He said one of the reasons was that after the state’s move,the Centre had announced it was working on a similar legislation,delaying the process initiated by the former. With the Centre having abandoned its move,the state would go ahead now,he said.

Referring to the opposition to provisions like the power to fix prices,he said,“The issue of fixing prices is a complicated issue… even if you compare the ‘ready reckoner’ prices of two plots in the same locality,they are different. Fixing prices is a tricky issue. We’ll have to think over it.”

He said that even without the power to fix prices,the regulator would have enough teeth to control and monitor the housing sector. The regulator would have the powers of a civil court and would monitor permission for the use of land for housing,and prescribe the percentage of houses for low income groups in a housing project.

DRAFT…
Set to change,the original said:
* 3 experts to head commission
* Up to 21 in advisory panel
* Powers of a civil court
* Registration of builders
* To monitor permission given for land use
* To streamline procedures
* To protect interests of flat buyers
* To fix prices of houses for low,middle-income groups
* To promote rental housing

…& delay
2006: Draft released Nov 1
2007: Draft revised,submitted to Assembly July 3
2008: Approved by Cabinet April