Haryana Govt Plans Real Estate Regulatory Authority

The Haryana government is functioning towards setting up a Real Estate Regulatory Authority to control the blooming real estate sector and avoid unprincipled realtors from targeting property buyers. The state government is preparation to pass a bill to set up the authority in the coming budget session programmed to commence on February 22, said Rao Dan Singh, chief parliamentary secretary (town and country planning), Haryana, on 5th February.

“As yet, the property buyers, in case of any argument with the builders, have to approach the civil courts. After foundation of the proposed authority, they would be able to complain against the builders with the new forum. Apart from giving early release to them, the authority would also decrease the burden of courts,” said Dan Singh, adding the authority may be empowered with quasi-judicial powers.

Talking to TOI, R R Singh, an ex-Army officer and director general of National Real Estate Development Council (NAREDCO), said, “Any regulatory body should have a single window system for setting up strategy and hear grievances of consumers. It should lay down actions for reaching builder-buyer agreement, project deadlines for builders and even function as a quasi-court for redress of disputes. The body must also look into problems such as pre-launches of the projects by developers. The controller should be the umbrella body heading all stake-holders in the sector, with an aim to streamline the various procedures.”

When contacted by TOI in Gurgaon, developers said that a controller must not further make difficult and lengthen the existing actions and add more windows issuing clearances. The regulatory authority will be headed by a chairman and two members. According to a source, the authority would look into complaints pertaining to disputes related to sale and purchase of flats in housing societies. Efforts are on to incorporate a condition for imprisoning builders in case of violation of the sales agreement norms related to cost and timeline, said a source adding that the Union government has suggested up to a year’s imprisonment or fine up to 5% of the total project cost for violations.

 “The Centre has issued wider rule to set up such authorities in all states and we will keep in mind the same before finalize the draft bill for Haryana,” said a Haryana government officer. Principal secretary, Department of town and country planning, S S Dhillon, said, “We have prepared a draft proposal to seek approval of the chief minister before tabling it in the state assembly.”

In the past few years, Haryana has witnessed major real estate actions especially in Gurgaon, Faridabad, Rohtak, Sonipat, Panipat and Rewari due to the state’s closeness to the national capital.