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New Delhi : Minister of State (I/C) for Housing and Urban Affairs (HUA) Hardeep S Puri on November 15, 2017, stated that the Real Estate Act is a pioneering legislation which will have a long term transformative effect.
“We have put in place an eco-system to ensure that real estate sector is properly governed and buyers are empowered. I have absolutely no doubt that the history of Real Estate in India will be written in two segments, pre and post Real Eastate Regulatory Authority (RERA). The pre-RERA phase was characterised by the dreams and ambitions to own a house of many being dashed for a considerable period of time by a few persons exploiting that dream. We are not out of that phase yet,” Puri said. He was speaking at the RICS Real Estate Conference on “Policy, Reform and Regulation: the backbone of Indian Real Estate” here.
Addressing the participants, Puri observed that the lack of finances was only part of a problem for owning a house. There was very little transparency in the housing sector. Broken promises, incomplete housing projects tell a tragic tale of untold misery inflicted on hapless citizens who, in many instances, had pledged their life time savings and even the family silver just to own a house. “We are still witnessing the final phase of a cleaning up process involving the misdemeanours of a few who tarnished the image of the many developers genuine in their dealings,” he said.
Referring to a technical study conducted in 2011 which placed the housing shortage at 18.76 million in urban areas of which 96% is in the Economically Weaker Section (EWS) segment and in Lower Income Groups (LIG) Housing, the Minister said that subsequent assessments led to a revision of this figure and in the final analysis, the shortage is likely to be around or in excess of 10 million units which is aimed to be addressed through the flagship programme Pradhan Mantri AwasYojana (PMAY)) Urban of the Government of India. Puri stated that the thrust of the Mission has been to make available housing for the Economically Weaker Sections (EWS), Lower Income Groups and also the MIG (Middle Income Group), by harnessing Government land.
“We have also released various PPP Models to encourage housing through private partnership. Among the distinctive features of this scheme are that government will make available the land and in addition provide a subsidy to each allottee and assist in obtaining easy financing from banks for the remaining sum required. ” he further added, according to a PIB Release.
Stressing the importance of the Housing Sector, the Minister said that it plays a catalytic role in fulfilling the demand for housing and infrastructure in the country and is the second largest sector after agriculture providing employment to 6.86% of the workforce in the country.