Ministry for Housing and Urban Poverty Alleviation (MHUPA) head union minister Mr. Ajay Maken revealed that the government is all set to introduce a new regulatory body to protect the troubled home buyers.
The MHUPA minister pointed to the fact that the LIG (Lower Income Group) homes are decreasing now. By making it mandatory for all the real estate builders that they should separate 35 % of affordable homes for the middle class families.
Sources close to the MHUPA reveal that the draft is already prepared. While attending a press conference in New Delhi Mr. Ajay Maken disclosed to the media that his ministry is on the verge to introduce a regulatory body which he said to protect home buyers from the troubling hands of real estate developers.
The MHUPA Minister also affirmed the very emergency of proper residential planning. The regulatory body is to act as a rein to the real estate developers. The minister cautioned that most of the real estate developers forget the medium class people. Recent trends show that the luxury residential projects have an upward growth while the low budget homes are coming down.
Anyway once the bill gets in to action the unreliable real estate builders have rough and hard times. The medium income people only occupy nearly 11% of the total residential units. This led to a situation in the country where the number of vacant houses is increasing. Normally no medium income group people find it possible to live in any of the developed areas of the city.
As per the available statistics last year only 1.87 crore LIG homes were built. This number is far short of the required demand.
Real estate sector while aiming at developing top- end oriented townships and residential projects, knowingly forgets the poor and weak of the society. As a result only high earning professionals and business magnets could own homes in any of the developed areas of the city.
When 35% of affordable homes become mandatory the situation may get changed. The minister said that there are two options in front of the real estate developers either to reserve a 35 % for affordable homes or 15 % of the FAR.
The news about the regulatory bill is happy news for the home buyers, especially those less privileged ones. We want to see how the real estate developers react to it.
As per the revised standards of MHUPA, people up to Rs. 1 lakh will be considered as economically weaker section (EWS). Earlier this was Rs. 60000. The monthly income also is raised from Rs. 5000 to Rs. 8334.
The criterion for Low Income group-LIG is also raised from Rs. 1 lakh to Rs. 2 lakh where their monthly income is set to be below Rs. 16,667.