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Maharashtra government may not set up watchdog body for housing sector

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The BJP-led state government is unlikely to set up a watchdog body that would curb malpractice in deals involving real estate, sources told dna. The Housing Regulatory Authority (HRA) is the responsibility of chief minister Devendra Fadnavis, who has charge of the housing department. The HRA bill was passed by the previous state government.

What can the proposed HRA do?
A state housing department source said, "The Congress-NCP government had decided to set up the HRA to deal with the problems in the real estate sector. This move would have brought transparency to the housing sector and relief to the buyers."

Ramesh Prabhu, chairman of the Housing and Society Welfare Association told dna that the BJP-led government should pursue this issue of public interest. "If they scrap such an important bill, then the errant and unscrupulous developers will get a free hand once again," Prabhu said.

The HRA proposal envisaged having a website where potential buyers could check whether all building permissions for particular projects were in place. Moreover, the website would show which flats in a particular project were sold and which were available. The HRA would also help duped buyers come together, and get their stalled housing project up and running again.

What is the government doing to stall its implementation?
There is a strong sign that the Fadnavis government seems to have decided not to pursue the proposal, the housing department source said. "We have received more than 1200 suggestions and objections for framing the HRA guidelines. We have even submitted them to higher authorities, but these suggestions for HRA have been gathering dust in the Mantralaya for a long time. This shows that the government is not keen to go ahead with the HRA."

Moreover, the Fadnavis government has yet to set aside office premises for and appoint the office-bearers of the HRA, the source said. "We have not yet identified the office, the chairman and the members for the HRA. It seems that everything is in limbo. There is no clarity on this issue as of now," the source said.

Why is the CM not taking prompt action on HRA?
The state housing department is handled by chief minister Fadnavis, who also has charge of the home, urban development, general administration and other departments.

Another official said the chief minister has his hands full with issues from other departments. "The CM does not have time for the housing and urban development departments. Actually, these departments are very crucial for metros such as Mumbai. If these departments are neglected, then it will create a mess and the housing problem will escalate," he said.

After scrapping the HRA, the government may wait for the central housing regulatory bill to pass through parliament. Then the state government would not need to get a separate bill passed in the assembly.

Will a central HRA bill do justice to Mumbai?
But Prabhu said Mumbai's peculiar housing issues merited having a separate bill. "The problem is that Mumbai and its extended suburbs have different real estate issues than those of other cities. We cannot use the centre government's rules to resolve Mumbai's housing issues. We should have separate rules and regulations, which are tailored to Mumbai and its suburbs. Otherwise, the bill will come with various loopholes put in, which will give scope to developers to dupe the buyers and come out unscathed," said Prabhu.

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