SC irked over delay in setting up of real estate regulator

Supreme Court today expressed displeasure over the delay by the government in setting up of a real estate regulator to keep a check on the activities of realtors.

"How many more years will it take," a bench of Chief Justice H L Dattu and Justice A K Sikri asked when the counsel appearing for the Union Urban Development Ministry said it was in the process of drafting the Real Estate (Regulation & Development) Bill.

The observation came during the hearing of a PIL on unethical practices by real estate developers, including misleading advertisements by builders.

The bench, while adjourning the hearing, said the bill has been pending since long.

During the brief hearing, Additional Solicitor General N K Kaul told the court that the cabinet had considered the issue on December 17 last year and a new cabinet note is now being drafted.

He then sought six weeks' time to inform the court about developments on the issue, which the court granted.

The court, in March 2007, had issued a notice to the government on a PIL filed by NGO 'Sanrakshak'- The Protector, seeking framing of guidelines to regulate campaigns by real estate developers.

The bench was later informed that the government was mulling setting up a sectoral regulator.

As per reports, the NDA government wants two changes to the bill that was originally drafted by the UPA.

The changes relate to bringing down the percentage of receivables from home buyers that have to be kept in the escrow account for the purpose of construction from 70 per cent earlier to 50 per cent.

The second change the government wanted was to also bring the commercial segment under bill that earlier proposed to regulate residential projects only.