Press Information Bureau
Government of India
Ministry of Housing and Urban Poverty Alleviation
09-March-2011 15:35 IST
Regulatory Body for Real Estate Sector
The Minister of Housing and Urban Poverty Alleviation Kumari Selja has said that in order to promote planned and healthy real estate development of colonies and apartments with a view to protecting consumer interest on the one hand and to facilitate smooth and speedy urban construction on the other; Ministry of Housing & Urban Poverty Alleviation drafted a draft Model Real Estate (Regulation of Development) Act 200_____. The draft bill was put in public domain through website of the Ministry ( in August, 2009. Comments/suggestions on the draft bill were invited from public and other stakeholders including State Governments and Union Territory administrations, business chambers. More than 350 comments were received from real estate associations, real estate developers, consumers and State Governments.

In a written reply in the Rajya Sabha today she said, the Ministry of Housing & Urban Poverty Alleviation discussed the comments received and the issues raised with representatives of the State Governments in a meeting held in March, 2010 and then in a series of Workshops held in April, 2010, in order to prepare the second draft with the participation of urban development and urban law experts from some of the states. This draft was placed before a wider group of states, developers and experts in another round of consultations held on 11th June, 2010. However, through different consultations, the basic structure of the earlier model bill has undergone substantial changes and the Ministry had accordingly referred the matter to Ministry of Law & Justice to advice as to whether it would be appropriate to legislate in the matter by the Union Government or otherwise.

She said, Ministry of Law & Justice has opined that while some aspects of the proposed bill are in state jurisdiction, some of the issues being covered fall under Concurrent List and under the Concurrent jurisdiction. In keeping with the advice of the Ministry of Law & Justice, the law is being redrafted as a bill that may be posed to Parliament under the Concurrent List. Consultations and examination therefore are ongoing. The scope of the bill therefore, is under deliberation and no timeframe for its firming up can be assigned at this stage. Further, for the Government to proceed to the stage of implementation of legislation it would be necessary for the Government to complete its examination of the proposal and obtain requisite approvals.

The Minister said, the Government has announced the National Urban Housing & Habitat Policy, 2007 in December, 2007, which intends to promote sustainable development of habitat in the country with a view to ensuring equitable supply of land, shelter and services at affordable prices to all sections of society.