With a view to attract investment and protect interests of homebuyers, the J&K government has set ball rolling for formulation of 'Real Estate Policy 2020' by constituting a committee to prepare the policy document.
In 2018, then State Administrative Council had approved Real Estate Regulatory Act for J&K. However, under the provisions of the J&K Reorganization Act 2019, that Act was repealed as it allowed only state-subjects to buy properties in the erstwhile state. Now according to sources, the new policy will pave way for outside developers to invest in J&K.
The committee to be headed by VC Srinagar Development Authority will have VC Jammu Development Authority as member-secretary, and Commissioners of SMC, JMC, MD Housing Board, Directors of Urban Local Bodies, Chief Town Planners of Jammu and Kashmir as members.
The committee constituted by the Housing and Urban Development Department shall formulate the Real Estate Policy 2020 and building bye-laws.
The committee has been given a timeframe of 15 days to come up with the policy document, which will then be examined by the Administrative Council. The government in J&K has powers to notify Real Estates Regulatory Act.
A senior government official said that the real estate policy is aimed to safeguard interests of both the developers as well as the investors. "Except Jammu & Kashmir and Ladakh, all other states and UTs have Real Estate Regulatory Act which mandated constitution of Real Estate Regulatory Authority to oversee the implementation and grievance redressal," he said.
He said the move is aimed at promoting planned development of real estate and to ensure sale of plots, apartments, buildings and other real estate projects, in an efficient and transparent manner and to protect the interests of consumers.
The RERA would ensure a fair and just treatment of the buyers and protect them from any unscrupulous builders.
The Real Estate (Regulation and Development) Act, 2016, is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry.
The Act establishes a Real Estate Regulatory Authority (RERA) in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution.
The bill was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016. The Act came into force on 1 May 2016.
The Central and state governments are liable to notify the Rules under the Act within a statutory period of six months.
The Act makes it mandatory for each state and UT to set up its own real estate regulator and frame rules to govern the functioning of the regulator.
It is aimed at encouraging greater transparency, citizen centricity, accountability and financial discipline in the sector.