“The Industry is Trapped into the Lure of High End Housing”

Sitaram Kunte, Secretary to the Government of Maharashtra, Housing Department

Housing has been a burning issue and most probably will remain a burning ember for decades to come. Affordable Housing and Society Laws is what remains in the peoples psyche today. The Real Estate Regulation Bill has also been playing hide and seek for the past two decades. Where do we go from here?

In lieu, Sitaram Kunte, Secretary to the Government of Maharashtra Housing Department, shares his view with Accommodation Times.

Accommodation Times: By what time are Deemed Conveyance amendments expected after the 16th October 2009?
Sitaram Kunte: The deemed conveyance notification in its final form will take around three months. Many suggestion and objections have been received. The government will have to consider them on merits before coming to the final version of the notification.

Accommodation Times: What are the steps taken to implement the Housing Policy announced by Government of Maharashtra?
Sitaram Kunte: After announcing the Housing Policy the Government worked on all 56 of its actionable points. Various policies, amendments to acts and rules have been put in place to provide concrete shape to the policy. Cluster development policy, amendment of MoFA Act to make sale by carpet area mandatory and deemed conveyance are some of the examples of the steps taken by the Government.

Accommodation Times: Is the Government of Maharashtra moving on to create a regulator for the real estate industry?
Sitaram Kunte: A draft bill was prepared to establish a regulatory commission. However it could not be introduced in the Legislature. In the meantime the Government of India has also come out with a model bill to set up a regulatory commission and appellate authority for this sector. We are studying the model bill and also comparing it with our own draft bill. It will be for the new government to finally decide whether to set up a regulatory commission and if so in what form.

Accommodation Times: Are we going in for further amendments in MOFA and Society Act?
Sitaram Kunte: No more amendments are contemplated at the moment. The Act is quite comprehensive; only its enforcement needs some improvement. Setting up a regulatory commission could be one way for better implementation.

Accommodation Times: Are Model Bye-laws for societies published?
Sitaram Kunte: Yes

Accommodation Times: Do you believe that a stimulus plan is required for the issues of housing in Mumbai?
Sitaram Kunte: In general this sector requires addressing itself to the demands of the common man who is asking for affordable housing. The industry is trapped into the lure of high end housing. There is an oversupply of high end housing, with many houses remaining unsold, and an undersupply of affordable housing with many people homeless because they cannot afford a house. This market distortion needs urgent correction. Captains of housing industry need to look into this. There is lot of latent demand in the affordable segment waiting to be tapped. This will provide the requisite stimulus.

Accommodation Times: Would it be viable to have a PPP for affordable housing schemes on a large scale along with special zones for residential purposes (on the lines of SEZs)?
Sitaram Kunte: The Government of India has launched a scheme called Affordable Housing in Partnership, which is being implemented by the state government and MHADA. This is founded on PPP concept. Also, we have a special township policy that allows setting up of residential zones.