Real estate regulatory bill to acknowledge only carpet area
The proposed Real Estate (Regulation and development) Bill has made carpet area a compulsory feature for approving building plan. The decision was made by top government officials at Association Chambers of Commerce and Industry in India (ASSOCHAM) event held in New Delhi.
Now, the development authorities and municipalities will have to clear building plan or map only on the basis of carpet area. The other criterias like built-up area and super built up area will not be considered.
Carpet area is the actual area where carpet is laid down. It is enclosed within walls and does not include the thickness of inner walls.
Developers in NCR sell housing units on the basis of super built up area which includes built up area (carpet area + thickness of walls +balcony) and common amenities like corridors, stairs, lifts and club house.
The Secretary, Ministry for Housing and Urban Poverty Alleviation (HUPA) confirmed that the real estate regulatory bill would be in picture in the next session of Parliament.
Last month, the Union Cabinet did not accept provision of Jail term in the draft bill for developors for not fulfilling their promises. Other provisions in the draft bill for the real estate sector include that builder can only lauch its projects after receiving all neccesary clearances from concerned authorities. The builder is also suppose to display all approvals on its website page prior to constrution work.
In ASSOCHAM affordable housing summit, the minister said that the centre would realease affordable housing task force report to the state governments in the next 15 days.
The report has listed all the issues regarding airport clearance, forest and environment clearance, taxation etc and would direct to adopt policy guidelines. Issues like land availability issues, single-window clearance system, FAR & FSI issues, development control regulations etc can be handled at state level with no costing to the states.
On rental law amendment issue, the minister is firmed to take serious action to gain right momentum.
He further stated that Rajiv Gandhi Awaas Yojna for below poverty line (BPL) families in delhi is facing issues regarding identification of the eligible people who can be allotted these houses. Although work has begun, but it is running at snail’s pace.
The carpet area has also been made mandatory in Mumbai from past two months. Despite of this announcement, many builders continue to sell housing units on super built -up area. Moreover building plans and registration of flats are approved by government agencies on built-up area.
The existing law is the Maharashtra Ownership Flats Act, 1963 which regulates the promotion, construction, sale and transfer of flats. It is commonly known as MOFA which says that the flat price must be computed on the basis of carpet area.
There is no authority to keep check on such actions. The past experience depicts that the government has to keep a strong monitoring over this norm to be followed.
Related Real Estate News:
Maharashtra Building Plan on Carpet Area Only
Real estate bill hard on builders
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