Govt plans regulatory body for realty sector

Government of India is planning to set-up a regulatory body to address the complaints of builders and consumers in Delhi. This is expected to be functional in the next six months.

This will be a model legislation and the central government will ask all the state governments to emulate the legislation.

Minister for urban development S Jaipal Reddy, told reporters on the sideline of the Real Estate Summit 2007 organised by FICCI.

"Since land is a state subject it cannot be governed under the national laws. Hence we have set up a model law in Delhi and will ask the state governments to follow the same."

"This is good news for the consumers of small flats as it will give protection and will also benefit builders who face lot of problems," he added.

Reddy also said that he will ask the state government to consider reducing the stamp duty on property, as it can rationalise property prices further.