The nation is still some distance way from a regulatory framework for its real estate sector. Urban housing and poverty alleviation secretary Arun Kumar Mishra admitted as much today at a conference on affordable housing.

The real estate (regulation and development) Bill has missed its date with Parliament this budget session. “We wanted to present the bill in the ongoing session of the Parliament by could not do so,” Mishra said at the conference being held in the national capital. What is worse is that his department wasn’t sure if it would be presented in the monsoon session.

The draft Bill had been presented before the cabinet last month but a decision on it was deferred.

With provisions for strict punishment like jail terms for developers for misleading buyers and property investors with false promises, the Bill is facing heavy criticism from the real estate industry which says the former favours buyers.

The bill makes it mandatory for developers to launch projects only after they have cleared all statutory guidelines. The builders, under the guidelines of the bill would also have to post all the relevant clearances for on their website before starting construction. And the most important provision of the bill, and which has been opposed by the real estate lobby, is the provision of three years jail term for the developer who misleads buyers.

The secretary, attempting to allay the fears of the builders and developers said, the bill would be balanced and would not hamper the growth of the industry. “Rest assured, the bill will only help the industry grow,” he said.

The secretary also said the innumerable clearances involved in the affordable housing project are a cause of serious concern and would be taken care of.
“I am aware of the frustration of the builders who are into affordable housing segments and I am in favour of a single window clearance system,” he said.
 The draft legislation becomes important in the backdrop of the many land and housing-related crises that have surfaced in recently.