Realty body seeks independent regulator

Even as a model regulatory Bill for the real estate sector is likely to be introduced in Parliament this year, developers in Gujarat are already working on formulating a state-recognised regulatory body.

The Federation of Real Estate Developers Association of Gujarat (FREDAG), an umbrella organisation of realtor bodies in the state, will soon approach the Gujarat government to work out the details of forming a body.

Mukesh Sheth, president, FREDAG, said, "We already have a code of conduct which is adhered to by the members of FREDAG across the state. But the state government has shown interest and invited consultations from our fraternity. We will conduct a board meeting of our member associations and then proceed accordingly."

Though under the code of conduct drawn out by the Confederation of Real Estate Developers' Associations of India, the parent national association of FREDAG, member developers are supposed to comply with certain rules and regulations, a need of an independent governing body was felt since the current associations carry self-restraint.

The demand for a separate regulatory body comes in the wake of a model regulatory Bill being introduced in Parliament under which all the states will be expected to enact the model Bill in their own way.

Developers believe the regulatory body would bring in more surplus land as developers would form more joint ventures for property development.