The Union Ministry for Housing and Urban Affairs will forward the proposed Model Tenancy Law to the Council of Ministers i.e. Cabinet to approve the same in the least time possible. The sanction from the Union cabinet will allow the states or Union Territories to draft their own law on the same and they can also make amendments to the same, informed ministry Secretary Durga Shankar Mishra.
While addressing Assocham conference on real estate, Mishra said that all building sanctions and completion certificates will be made available online in a determined time-framed across the country as part of the ease of doing business objective.
The ministry released the draft model tenancy law and sought comments from the public and other stakeholders. The draft rule states that a three-month notice is must to offer before revising rent. The draft suggests appointment of district collector [DM] as the rent authority and along with heavy penalty on the tenants for overstaying.
Mishra was quoted saying that we have come out with a draft tenancy law as announced in the Budget. We are seeking comments on this draft from all statekholders including States. He also said that the model tenancy law would be finalized soon on the basis of feedback.
He was further quoted saying that we will approach union Cabinet for approval of this model law and then send it to states/UTs.
On the question to approach the Cabinet, the secretary Mishra said that I will not be able to provide exact timeline. But this has been announced in the Budget, so it’s a direction for us. He also quoted a study that the rental housing market is worth Rs 1.5 lakh crore annually and this would grow with the adoption of this model tenancy law by state governments.
As per the Census 2011, approximately 1.1 crore houses were lying vacant in the country and making them available on rent will help us accomplish the aim of ‘Housing for All’ by 2022, Mishra said. He then said that the Union Government has taken multiple measures in the last five years to revive the real estate sector by introducing laws like the RERA Act.
He also said that nearly 42,000 projects and 33,000 agents have been registered under this law. The regulatory authorities across the states have resolved 20,000 complaints. While talking about the ease of doing business, Mishra said that the online building approvals are already in place in 1,705 cities and hoped that local urban bodies across the country would have this facility.
Mishra then said that we are progressing towards a seamless system.
Niranjan Hiranandani, Assocham’s Senior VP, however, expressed concern about the liquidity crisis in the industry including real estate due to the fund crunch with non-banking financial companies.