Real Estate Regulatory Bill: Recognise Only Carpet Area..!


The proposed bill to regulate the Indian real estate sector would make it mandatory for the development authorities to clear the building plan on the basis of carpet area, a top government official said.

The central government will bring the Real Estate (Regulation and Development) Bill in the next session of Parliament.

Addressing ASSOCHAM Associated Chambers of Commerce and Industry of India) conference on affordable housing, Ministry for Housing and Urban Poverty Alleviation (HUPA) Secretary Mr. Arun Kumar Misra said, ''Only the carpet area will be recognised in the real estate regulatory bill. The municipalities & the development authorities would have to pass the map on the basis of carpet area & this would be a mandatory requirement as any other criteria apart from that such the super area or the built-up area &  others would not be recognised by us"

In the national capital region (NCR), developers / promoters sell housing units on the basis of super area that includes built- up area plus area occupied by common amenities such lifts, corridors, club house and stairs. Super built  up area is usually about 25% more than built up area.


On the real estate regulatory bill, Mr. Arun Kumar Misra said: "It would be difficult to give a time frame as we wanted to bring the real estate bill in Parliament in this session but we will not give up and definitely try to bring it in the next session."

Last month, the Union Cabinet had deferred the approval of draft real estate bill to set up a regulator for the real estate sector with provisions for jail term for the developer for putting out misleading advertisements about projects.

The proposed real estate regulator also seeks to make it mandatory for developers / promoters to launch projects only after acquiring all the statutory clearances from relevant authorities.

It also has provisions under which all relevant clearances for real estate projects would have to be submitted to the regulator and also displayed on a website before starting the construction.

Mr. Arun Kumar Misra said, ''The government would release the affordable housing task force report to the state governments in the next 15 days and would ask them to adopt the policy guidelines".

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