The government will protect the interest of home buyers of stalled projects with the help of the real estate regulatory Act and the bankruptcy law, Minister of State for Finance Arjun Ram Meghwal said Monday. “Consumer interest is our highest priority,” he said on the sidelines of a realty conference organised by industry body NAREDCO here.
He was replying to a query about ongoing protest by home buyers of Jaypee group and Amrapali. Meghwal said the government is regularly reviewing the situation and buyers’ interest will be protected through the Real Estate (Regulation and Development) Act, which was passed last year and came into effect from May 2017.
Thousands of home buyers have intensified protests after the National Company Law Tribunal (NCLT) admitted IDBI’s plea for initiating insolvency proceedings against Jaypee Infratech for defaulting on a Rs 526-crore loan. Bank of Baroda has also approached NCLT for initiating insolvency proceedings against Amrapali, leading the buyers to protest on streets and go on hunger strike.
Meghwal said the government was aware of the home buyers problems and therefore brought a new regulatory law RERA last year for the benefit of both buyers and developers. The Insolvency and Bankruptcy Code would also help in ease of doing business, he added.
The government is taking care of interest of consumers through RERA, Meghwal said, adding this law has provisions to protect home buyers interest. “For those developers who have defaulted on promise and not delivered flats, we are regularly reviewing the situation. Through RERA, we are protecting the interest of home buyers and will provide relief. Be it any developer group, regulators will do its job,” Meghwal said.
On buyers complaint that the government is not hearing their grievances, he said: “Home buyers have met me. I have spoken to owner of Jaypee Group also. We are in regular touch. We will take care of interest of consumers.” Addressing the conference, Meghwal assured that he will take up any issues that developers have relating to the GST.
“We have an open mind. If there is any tax related issue, I will take up the matter in the GST Council,” he said. Responding to SBI’s MD (National Banking Group) Rajnish Kumar comment that there was not much clarity on the GST, Meghwal said the real estate industry should communicate if they have any issues.
He said the GST has been implemented for the growth of the country in right direction and expressed confidence that the real estate sector would also reap benefit. Meghwal said 2017 would be known as the year of economic reforms and listed out several initiatives taken by the government beginning from demonetisation on November 8, 2016.