Real estate regulators will be set up in states

Urban development minister S Jaipal Reddy said on Thursday 27 September that the central government was encouraging state governments to set up regulatory bodies for the real estate sector at the state level. The first such body may be set up for the national capital region (NCR) within six months.

These quasi-judicial bodies would address the concerns of both consumers and developers, Reddy told the media at the International Real Estate Summit organised by the Federation of Indian Chambers of Commerce and Industry (Ficci).

The government''s plan to regulate the real estate industry follows from its concerns over the rampant malpractice in the sector. Homebuyers are often cheated on price, floor area and grossly one-sided documentation. Developers face difficulties in procuring land and executing projects.

"We will set up a regulator in Delhi which can serve as a model for other states to emulate," Reddy said, adding that the land prices may not be included in the body''s jurisdiction. This is because though the centre would facilitate state-level regulators, it would not interfere with land matters, which is a state subject under the constitution. But whether a state has a regulator or not would be a factor in considering assistance to state governments under Jawaharlal Nehru Urban Renewal Mission, he added.