smart city

A turn on mega projects worth Rs. 4 lakh crore are for developing smart cities and towns to provide “Housing for All” for next seven years besides all the proposed amendments in real estate rules which was marked for the year 2015 in the urban development sector.

The central government has also approved many amendments in the Real Estate Bill, 2015 (Regulation and Development); with various provisions for depositing 70 percent of the real estate projects cost by the real estate builders into escrow account and fine or punishment for violations of the proposed real estate laws. However; the main aim of amendments is to protect the interest of the buyers and encourage the investors and buyers to show more interest in the real estate market by ensuring transparency. Apart from that the other major reform was to introduce the allocation of central assistance to the Union Territories and States based on the number of statutory urban local bodies and the total urban population besides slum dwellers and number of urban poor in each state.

However; the allotment of the bungalow of late President A P J Abdul Kalam, which is located at 10 Rajaji Marg to Mahesh Sharma, Tourism and Culture Minister was also created a lot of controversy through the efforts of Aam Aadmi Party as AAP was criticizing the move. Apart from that Aam Aadmi Party also demanded that the bungalow of late President A P J Abdul Kalam after his term as President which was ended in 2007 should be converted into a knowledge centre. But M Venkaiah Naidu, Urban Development and Housing & Urban Poverty Alleviation Minister defended the move and allotment of the bungalow by saying that allocation was made as per previous rules and regulations and the the central government had already decided to set up a memorial in memory of late President A P J Abdul Kalam at his native place of Rameswaram in Tamil Nadu.

Ambitious Housing Schemes of Modi Government:

PM Modi, launched his most ambitious schemes such as; AMRUT (Atal Mission for Rejuvenation and Urban Transformation), PMAY (Prime Minister’s Awas Yojana) and Smart City Mission on the June 2015 with a call to promote the planning and development in the country to set of new beginning in urban regions, which could be the key drivers in the economic growth of country. According to reports, 100 smart cities will come in existence in next five years, more than 500 cities will be developed under AMRUT scheme and PMAY scheme will aims to construct two crore houses in urban areas in the duration of next seven years under “Housing for All” scheme. While summing up new initiatives, Naidu told PTI; “Year 2015 is very significant the sense as we have set up urban planning in the country under many new different schemes. However; considering the provisions under AMRUT, Housing Mission and Smart City Mission there are new conscience on the part of urban local bodies which could be for effective for planning and execution”.

The introduction of competition for selection of Smart Cities Mission is first of its kind in the allocation of resources and funds. Apart from that government is also taking the consultation for prioritization and planning of the projects from normal citizens at city level and it is mandatory under the new urban initiative which is launched in 2015.

Central Advisory Council

Recently, the central government of India has made a crucial amendment in the CAC (Central Advisory Council) and according to new amendment real estate agents will be the part of Central Advisory Council, which is involve in helping the government to understand the issues related to the Indian real estate sector.

This new amendment has made the property brokers or real estate agents, a key stakeholder with homebuyers and builders in the real estate industry. However; in a separate development government is pertaining the same bill in the Rajya Sabha Select Committee, with an aim to add the functions of the REAA (Real Estate Regulatory Authority), which will be formed under the new proposed Bill and it will also include the protection of interest of allottees, promoters and agents. It is proposed to form a council under the aegis of the amended in the Real Estate Bill, whereas; the Minister of Housing & Urban Poverty Alleviation will be act as the ex-official chairman of the same body. The new group will provide active advice to the central government on different facts such as; protection of consumer interest, implementation of the Act,, recommend policy and foster development as well as growth in the real estate sector.

However; officials are expecting that soon new council will come in existence and it will act as the main mover in for starting the debates on critical facts and figures of the Indian real estate industry. According to the statement of the Sanjay Bhargava, Founder of realty advisory company Bombay Homes, “After including the real estate agents, central government will get the better understanding on many of the issues which are related to the satisfaction and transactions in the real estate sector because agents are the persons who directly interact with customers in comparison of real estate builders or any other official authority”. Apart from that real estate agents are happy with new amendment because now onwards they can highlight the key issues on which government can work. However; many different broker bodies are suggesting to set-up the registration format and minimum criteria for property brokers where they need to have minimum educational qualification, if they want to raise their voice and concern for the real estate sector.

However; the Real Estate (Regulation and Development) Bill, 2013 is seeking to establish the RERAs (Real Estate Regulatory Authorities), at the state level so that every state can regulate the development of real estate sector in country. The main aim of RERAs is to make sure that there is consumer protection and standardization in the business practice of real estate sector of the country.