Govt warns real estate developers of action for cheating home buyers

The government on Tuesday warned the developers with “strictest” possible action if they take consumers “for a ride” even as it sought to allay their fears over the proposed Real Estate Regulatory Authority, saying it would be regulation and not “strangulation”.

Minister for Urban Development, Housing and Poverty Alleviation M Venkaiah Naidu said the Real Estate Bill, which was passed by Parliament, was notified on May 1 and now requires the state government to make model rules and set up a Real Estate Regulatory Authority.

“We have received thousands of emails and messages from across the country, from Gurgaon, Nodia (about consumers getting cheated by real estate developers),” Naidu said in the Lok Sabha during his reply to a debate on Demand of Grants for his ministry which was later passed by the House.

Without taking the name of M S Dhoni, he appeared to refer to him as he said “certain cricketer” had appeared in an advertisement for a real estate developer.

Consumers are being cheated by “fly-by-night operators”, the Minister said, adding “I would like to warn (real estate developers) with strictest action…. They should not take consumers for a ride.”

At the same time, he said, “I would also like to tell the builders that the passage of the (real estate) bill does not mean strangulation, but it is a regulation.”

He also said it is the states which should now make “Model Rules” and appoint a regulatory authority and that the state government should also notify it by October 30.

With regard to queries raised by several MPs over the allocation of funds to the ministry and different programmes under it, Naidu said even he was not “happy” with it as the projects require huge investments.
The HUPA minister said he was pursuing the matter with Finance Minister Arun Jaitley but was aware of the limited resources.