The regulatory commission to be set up under the new housing policy will decide on the cost of flat in a particular area.
The commission will check construction costs and decide the margin of profit for developers
Seeking to put a cap on the spiralling property prices, the state government said the regulatory commission to be set up under the new housing policy will decide on the cost of flat in a particular area.
A quasi-judiciary authority, the commission will function on the same lines as the Maharashtra Electricity Regulatory Commission. When set up (it is expected to take six months), the Housing Regulatory Commission will be the first such body (to control property prices) that will be set up in the country.
Chief Minister Vilasrao Deshmukh made this announcement following a marathon four-hour meeting with city legislators, who were called to hear their suggestions before the housing policy is finalised.
Hoping prices will reduce as the policy envisages, Deshmukh said, “At one place, a flat costs Rs 3,000 per sqft and another place Rs 5,000 per sqft. The land prices are also increasing. There is a need to keep prices under control.”
Housing secretary S Kshatriya said while the mechanics is being worked out, the commission will play the role of a watchdog to monitor rising property prices (not for high-income group).
“Like MERC which analyses the cost of generating electricity before fixing the fare, the commission will decide whether the cost of construction as claimed by the developer is probable. Based on which, the commission will fix the cost of the flat and in turn decide what should be the profit margin of a developer.” The commission will further try to resolve conveyance disputes between a developer and society, ensure flats are sold on carpet area and importantly, ensure developers provide the amenities they had promised.
The legislative assembly, incidentally, recently approved an amendment to the Maharashtra Ownership Flat Act which authorised the district collector to take action against builders who failed to convey (transfer) the property in the society’s name. Apart from levying a penalty, developers, if found guilty, are liable for six months imprisonment.
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