Govt committed to repeal ULCRA

Later on, Ficci submitted a memorandum to the minister requesting the Union government to set up a separate regulatory body empowered to streamline proper inflow and usage of foreign direct investment in the housing sector. The federation has also felt that the chances of achieving thetarget of providing 20 lakh houses per year “seems remote unless corrective measures like provisions of fiscal concessions and easy availability of finances to the housing industry are immediately initiated while finalising the norms for non-resident Indians, persons of Indian origin and overseas corporate bodies”.

Other measures recommended by the FICCI included judicious balance between demand and supply particularly at the middle and higher income housing construction activities otherwise it will have a tremendous `drag effect’ on the Indian economy as it had happened earlier in 1992 and presently in South East Asian countries. The federation also suggested for securitisation of assets, amendment to rent control act, removal of restrictions on buying land in some states by the outsiders. The delay in sanctioning the housing schemes, inadequate property management were among other reasons cited behind the slower growth.