Expressing hope that Parliament will pass the Real Estate (Regulation and Development) Bill in its Monsoon Session, Housing and Urban Poverty alleviation (HUPA) minister Girija Vyas said that the legislation aims to protect consumer interest but was not against the industry.
"We have sent the bill for the Monsoon Session because it has been passed by the Cabinet. From the government's point of view, regulation is very important. The bill is consumer friendly, but not against the interests of promoters," Vyas said.
"There will be a system of regulation, which is what we are trying to tell them. I have confidence that in this session of Parliament, the bill will be passed by both Houses," she said.
Earlier, addressing members of the real estate industry at an event organised by CII, Vyas stressed that the government was not aiming to bring in a legislation which was against the interests of developers and promoters.
Responding to a question related to easing the flow of FDI into the real estate sector, Vyas said that while foreign investment was needed, her ministry was in the process of consultations with stakeholders to assess its impact, especially to see that it didn't hurt the consumers.
"When FDI is there in other sectors, it is important that it is allowed in this sector as well. But I want to speak to all stakeholders, people, consumers and we are in the process (of doing that)," Vyas said.
She added that the government wanted not just the big houses for the rich but also a smaller, affordable housing segment to come up.
Secretary, HUPA, Anoop Kumar Misra said that the ministry was considering making recommendations like changing of norms related to minimum built up area for projects, capitalisation and lock-in period of investment vis-a-vis FDI in real estate.
