The government is all set to introduce a buyer-friendly real estate legislation which aims to protect consumers and bring transparency in the sector in the Monsoon Session of Parliament.
"We will be introducing the Real Estate (Regulation and Development) Bill, 2013, which is very relevant to real sector in the Monsoon Session," said Housing and Urban Poverty Alleviation Minister Girija Vyas in New Delhi on Wednesday.
She said the Bill has been approved by the Cabinet and is proposed to be introduced in Parliament.
The Monsoon Session of Parliament will begin on August 5 and the Bill, after its introduction, is likely to be referred to the Standing Committee of Parliament for examination.
Describing the Bill as a pioneering legislation which will install standardisation and professionalism in the sector, Vyas said, "It will ensure consumer protection and promotion of the real estate sector through effective regulation and introduction of speedy mechanism for adjudication of disputes."
The real estate sector is one of the largest business and employment generators in the Indian economy.
Despite its mammoth size, the sector does not have a regulator who can balance the interests of the various stakeholders involved though there are a number of legislations at various levels that affect the sector directly or indirectly.
Assuring the industry that all their concerns have been taken into account in the Bill, she said, "Any further suggestions, if any, can also be taken on board at the time of examination by the Standing Committee."
"The government is keen to bring reform to the areas which are crucial for the development of housing and real sector," she said.
According to the HUPA Ministry data, the housing shortage in India is to be around 18.78 million out of which 56 per cent is in the economically weaker category and 39 per cent is in the lower income group category.
Quoting the McKinsey Global Institute projections, she said, "About 38 million households will not be able to afford housing by 2030. This is quite alarming for us."