Realty bill may become reality in Parliament winter session

The Centre is set to clear 10% disinvestment of its mineral PSU, NMDC and the much-awaited Real Estate Regulatory Authority Bill which aims to bring the booming sector under a regulatory regime and ensure that prospective buyers are not duped by unscrupulous players. Saubhadra Chatterji reports.

As part of its ongoing thrust on reforms, the Centre is set to clear 10% disinvestment of its mineral PSU, NMDC and the much-awaited Real Estate Regulatory Authority Bill which aims to bring the booming sector under a regulatory regime and ensure that prospective buyers are not duped by unscrupulous players.

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The cabinet committee on economic affairs (CCEA) on Thursday will take up the proposal for sale of 10% stake out of the government's holding of 90% shares of NMDC.

The disinvestment is expected to bring Rs 7,000 crore to the coffers.

The Union cabinet will discuss a diluted version of the Real Estate Bill on Thursday.

In a major concession to the state government, the centre will allow them to set up their own grievance redressal mechanisms.

Though the bill had earlier envisaged one central body, non-Congress ruled states such as Uttar Pradesh, West Bengal, Tamil Nadu and Chhattisgarh had demanded separate set-ups.

The government plans to introduce the bill in the winter session of Parliament, which will occur next month.

Government managers are hopeful that after the dilution of the redressal mechanism clause, opposition parties would help pass it in the Parliament.

While the bill proposes to set up a real estate regulatory authority in every state, developers would have to submit disclosures to the regulators concerned.

Only after declaring their approved plans, timeline and other details, would the developers be able to advertise their project to the public.

The new law would also require compulsory registration for builders, who are developing projects where more than 1,000 sq metres area is used. Failure to do so will invite imprisonment of up to three years or a fine of up to 10% of the total project cost.