Proposed law to safeguard home buyers' interest: Ajay Maken

Home buyers may soon get a bigger say in property agreements and a shield against frauds as a proposed law aimed at safeguarding their interest would be tabled in parliament during the budget session, union minister Ajay Maken said today.

Home buyers may soon get a bigger say in property agreements and a shield against frauds as a proposed law aimed at safeguarding their interest would be tabled in parliament during the budget session, union minister Ajay Maken said on Tuesday.

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The Real Estate Regulatory Authority Bill would reduce irregularities in the real estate sector, the minister for housing and poverty alleviation said at an event in Mumbai.

Addressing the 'Governance of Megacity Regions' conference, organised by Confederation of Indian Industry and Centre for Policy Research, Maken said, "Not only will it protect the rights of home buyers, but also bring in greater transparency."

The proposed law proposed restricting developers from channelising funds collected from customer for one project to another, he said.

"The property agreement documents, which are prepared and executed by the developers, will also not remain one-sided, thereby, not favouring the developer alone," he added.

Maken said that the ministry was contemplating providing "infrastructure sector" status to the affordable housing segment which will enable banks to provide loans to the urban poor.

"The poorer sections will receive easy financing options augmenting the affordable housing market and in totality giving a boost to the real estate industry," he said.