The booming construction sector is functioning under "outdated" rules and requires a new comprehensive law for effective regulation, Minister of State for Law and Justice V Venkatapathy said on Friday.
"We would not like to have outdated rules, which hinder the construction industry. There is also a need to unfetter our companies from procedural delays to face the competition of international companies coming to India," Venkatapathy said at a conference in New Delhi.
There was an urgent need to review the existing laws regulating the construction industry, he said.
In absence of a comprehensive law, a plethora of laws and statutes are applied to regulate the industry, rendering the life of the construction professionals miserable, he added.
The minister pointed out that despite its vital position, construction industry commands a poor image among the public.
Senior Supreme Court Advocate and Rajya Sabha Member Abhishek Manu Singhvi said there should be a single window clearance mechanism in the construction sector.
"At present, more than 20 statutes govern construction sector and none of them are allowed to act independently," Singhvi said, adding such a system would check all property related frauds.
"There is also an urgent need to establish a redressal body for removal of grievances," he said, stressing for establishing a tribunal for this sector.
He also said there should be provisions of fine on builders in the proposed law for delay in delivery of a property.