Draft Real Estate (Regulation & Development) Bill, 2011, Draft Model Property Rights to Slum Dwellers Act, 2011 and Central Legislation for Street Vendors

Draft Real Estate (Regulation & Development) Bill, 2011, Draft Model Property Rights to Slum Dwellers Act, 2011 and Central Legislation for Street Vendors

Ministry of Housing & Urban Poverty Alleviation notified the `Draft Real Estate (Regulation & Development) Bill, 2011`, The Draft Model Property Rights to Slum Dwellers Act, 2011` and Central Legislation for Street Vendors at a Press Conference in New Delhi.

I.  Draft Real Estate (Regulation & Development) Bill, 2011

 The Draft Real Estate (Regulation & Development) Bill, 2011 seeks to establish a regulatory oversight mechanism to enforce disclosure, fair practice and accountability norms in the real estate sector, and to provide adjudication machinery for speedy dispute redressal. This Act is in pursuance of the powers of Parliament to make laws on matters enumerated in the Concurrent List namely, transfer of property other than agricultural land; registration of deeds and documents, and contracts including partnerships, agency, contracts of carriage, and other special forms of contracts, but not including contracts relating to agricultural land.  The Bill aims at restoring confidence of the general public in the real estate sector; by instituting transparency and accountability in real estate and housing transactions.  Currently, the real estate and housing sector is largely unregulated and opaque, with consumers often unable to procure complete information, or enforce accountability against builders and developers in the absence of effective regulation.  The sector, in recent years, has also emerged as a source of black money and corruptions in the economy. The Bill is expected to ensure greater accountability towards consumers, bring transparency and fairness in transactions and reduce frauds and delays significantly. All of these factors would make sizable dent in the corruption in this sector.

 The Bill is also expected to promote regulated and orderly growth through efficiency, professionalism and standardization. It seeks to ensure consumer protection, without adding another stage in the procedure for sanctions.

 The salient features of the Draft Real Estate (Regulation & Development) Bill are:

  1. Establishment of a ‘Real Estate Regulatory Authority’ in each State by the Appropriate Government (Centre for the UTs and State Governments in the case of the States), with specified functions, powers, and responsibilities to facilitate the orderly and planned  growth of the sector;
  2. Mandatory registration of developers / builders, who intend to sell any immovable property, with the Real Estate Regulatory Authority as a system of accreditation;
  3. Mandatory public disclosure norms for all registered developers, including details of developer, project, land status , statutory approvals and contractual obligations;
  4. Obligations of promoters to adhere to approved plans and project specifications, and to refund moneys in cases of default;
  5. Obligation of allottee to make necessary payments and other charges agreed to under the agreement and payment of interest in case of any delay;
  6. Provision to compulsorily deposit a portion of funds received from the allottees in a separate bank account, to be used for that real estate project only;
  7. The Authority to act as the nodal agency to co-ordinate efforts regarding development of the real estate sector and render necessary advice to the appropriate Government to ensure the growth and promotion of a transparent, efficient and competitive real estate sector; as also establish dispute resolution mechanisms for settling disputes between promoters and allottees/ buyers;
  8. Authorities to comprise of one Chairperson and not less than two members having adequate knowledge and experience of the sector;
  9. Establishment of a ‘Real Estate Appellate Tribunal’ by the Central Government to hear appeals from the orders of the Authority and to adjudicate on disputes.  Tribunal  to be headed by a sitting or retired Judge of Supreme Court or Chief Justice of High Court with 4 judicial and at-least 4 administrative/technical members;
  10. Chairperson of the Tribunal to have powers to constitute Benches, for exercising powers of the Tribunal;
  11. Establishment of a Central Advisory Council to advise the Central Government on matters concerning implementation of the Act.
  12. Council to make recommendations on major questions of policy, protection of consumer interest and to foster growth and development of the real estate sector;
  13. Penal provisions to ensure compliance with orders of the Authority and Tribunal;
  14. Jurisdiction of Civil Courts barred on matters which the Authority or the Tribunal is empowered to determine;
  15. Both Centre and States to have  powers to make rules over subjects specified in the Bill, and the Regulatory Authority to have powers to make regulations;
  16. Powers to Central Government to issue directions to States on matters specified in the Act have also been specified.

 II.  Draft Model Property Rights to Slum Dwellers Act, 2011

The Ministry of HUPA proposed the strengthening of its Slum redevelopment strategy by working towards a slum free India, and assigning property rights to Slum Dwellers, under the Rajiv Awas Yojana (RAY). RAY proposes decisive action for inclusive urban development that acknowledges the presence of the poor in cities, recognizes their contribution as essential to the city`s functioning, and redresses the fundamental reasons for inequity that ties them down to poverty.

 The conferment of property title is a new direction for national policy that aligns national approach to the global practice. It sees ownership of property as the best investment in democracy, by creating for the household due space within the formal system, and thereby a vested interest in peace and legal order.

 The Model law is aimed at bringing within the formal system, those who are forced to live in extra-formal spaces and in denial of right to services and amenities available to those with legal title to city spaces, and at correcting the deficiencies of the formal system of urban development and town planning that have failed to create conditions of inclusiveness and equity, so that, henceforth, new urban families, whether by way of migration or natural growth of population, have recourse to housing with civic amenities, and are not forced from lack of options to create encroachments and slums and live extralegal lives in conditions of deprivation of rights and amenities.

 The Model law intends to enable the household to access the formal channels of credit; it draws the entire extralegal economy of slums out of the informal market; it enriches the slum dweller by giving him access to mortgageable rights for housing construction, and the formal economy by enabling a quarter of its population to participate in its growth. The importance that Central Government gives to this measure for inclusion and equity may be gauged from the decision to link central support for slum redevelopment with the empowering of the slum household with property rights.

The salient features of the Draft Model Property Rights to Slum Dwellers Act, 2011 are:

  1. Facilitation of inclusive growth and slum-free cities, to provide assured security of tenure, basic amenities and affordable housing to the slum-dwellers.
  2. Every landless person living in a slum area in any city or urban area on 4th June, 2009 shall be entitled to a dwelling space at an affordable cost.
  3. Every Slum dweller or the Collective of the Slum Dwellers shall be given a legal entitlement, which shall be in the name of the female head of the household or in the joint name of the male head of the household and his wife.
  4. Every slum dweller eligible shall be provided with basic civic services until the site for the dwelling space has been developed.
  5. The dwelling space so provided shall not be transferable but allowed to be mortgageable for raising housing loan, or in need to sell- but only to the Government or the Collective as the case may be.
  6. The dwelling space may be provided in-situ as far as possible, provided in cases on public interest they shall be resettled elsewhere.
  7. Constitution of a Grievance Redressal Committee for the purposes of resolving disputes in relation to matters about identification of slum dwellers.
  8. State Government shall prescribe and notify participative and transparent procedures for identification and periodic survey of slum dwellers for purpose of granting legal entitlement to slum dwellers.
  9. Establishment of City / Urban Area Slum Redevelopment Committee for implementing the provisions of the Act namely- to survey and make a list of slum dwellers, make an inventory of existing position regarding slum areas, formulate schemes for slum redevelopment/up-gradation/resettlement and for rental housing (including dormitories and night shelters) for the urban poor and slum-dwellers in-eligible etc.
  10. Establishment of a State Slum Redevelopment Authority (to be headed by the Chief Minister) to continuously monitor implementation of the Act and to recommend corrective measures wherever necessary.
  11. Emphasis on Community Participation by providing for establishment of Slum Development Committee for each slum area comprising of members for plan preparation, implementation, monitoring & evaluation, and post project maintenance.
  12. Power to acquire land for redevelopment/up-gradation and for resettlement under the Land Acquisition Act, 1894 as amended from time to time.
  13. Responsibility of the Government to prevent encroachment or of construction of illegal structures towards which necessary amendment to the Municipal and other Acts need to be undertaken.
  14. Civil courts not to have jurisdiction on matters for which the City/Urban Area Slum Redevelopment Committee, State Slum Redevelopment Committee, Grievance Redressal Committee, or the Tribunal is empowered.
  15. Power of the State Government to make rules on matters specified in the Act.

  III.  Credit Risk Guarantee Fund

 To address the issue of credit enablement of EWS and LIG households, the Ministry proposes to create a Credit Risk Guarantee Fund Scheme (CGFS) under Rajiv Awas Yojana. The salient features of the proposed fund are as follows:

Under the Credit Guarantee Fund Scheme (CGFS) the Government of India will provide credit guarantee support to collateral-free / third-party-guarantee-free housing loans up to Rs. 5 lakh extended by lending institutions for Low Income Housing. The CGFS will cover the housing loans to EWS/ LIG borrowers for the purposes of repairs, home improvement, construction, acquisition, and purchase of new or second hand dwelling units, involving an amount not exceeding Rs. 5 lakh per loan. The guarantee cover available under the scheme is proposed to be to the extent of 90% of the sanctioned housing loan amount for a loan amount of upto Rs.2 lakh. And 85% for loan amounts above Rs.2 lakh and upto Rs. 5 lakh. To administer and oversee the operations of the Scheme, provision has been made for establishment of a Credit Risk Guarantee Fund Trust for low income housing (CGFT). Rs.1000 crores has been earmarked as an initial Corpus for CGFS.

  IV.  Central Legislation for Street Vendors

The Ministry of Housing & urban Poverty Alleviation had come up with a new National Policy on Urban Street Vendors in 2009 after a comprehensive review of the previous policy. The Policy underscores the need for a legislative framework to enable street vendors to pursue an honest living without harassment from any quarter. We had drafted a Model Street Vendors (Protection of Livelihood and Regulation of Street Vending) Bill, 2009 and circulated to all States/UTs, requesting them to take a cue while legislating on the subject. The progress on state legislation has not been encouraging.  We are receiving continuous representations from the individual street vendors and their organisations to bring a central legislation which would be uniformly and mandatorily applicable to all the states and UTs. We are working to evolve and effective and practical central legislation for protection of livelihood rights and social security of street vendors in consultation with all concerned stakeholders including State Government.

 The bill would be based on the following basic principles:

  1. Legitimate street vendors are protected from harassment by police and civic authorities.
  2. Vending zones/spaces are demarcated for the street vendors. While demarcating the concept of traditional natural markets to be kept in mind.
  3. Adequate representation to street vendors and women in particular, is provided in the institutional structures created for ensuring proper implementation of the proposed law.
  4. A robust, effective and quick grievance redressal and dispute resolution mechanism is established.

 

REAL ESTATE BILL 2011   

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Railway Ministry Announces Rules to Prevent Misuse of Tatkal Travel Scheme

Narsapur

Image by Museum van mijn Twintigste eeuw via Flickr

The Minister of Railways Shri Dinesh Trivedi at a press conference here today said that several measures are proposed to be implemented in the next one week or so with a view to prevent misuse of Tatkal scheme by agents/unscrupulous elements by the activities during opening hours of the reservation counters:. These measures announced by him are as follows:-

 i.  The advance reservation period of Tatkal scheme should be reduced from two days at present to one day excluding the day of journey from the train originating station.  For example, if train is to depart from the originating station on the second of the month, the Tatkal quota for that particular train shall open at 0800 hours on the first of the month.

ii.  There shall be no refund on confirmed Tatkal tickets subject to the exceptions such as cancellation of trains, late running of trains, etc.  This is proposed on account of the following reasons :-

 Advance reservation period of Tatkal is very short i.e. approximately one day.  It is expected that the passenger would have a firm programme of travel before booking the Tatkal ticket.

 To prevent misuse of Tatkal ticket by unscrupulous elements by resorting to speculative booking.

 iii.  No duplicate Tatkal tickets shall be issued. Duplicate Tatkal tickets shall be issued only in exceptional cases on payment of full fare including Tatkal charges.

 iv.  Tatkal tickets shall be sold only on production of one of the eight prescribed Identity cards as proof of identity.  For this purpose, a self attested photo copy of the identity card on which the passenger(s) proposes to travel shall be attached to the requisition slip.  The details of the identity proof shall be captured by the system and indicated on the reserved tickets as well on the chart. It will not be mandatory for the passengers to go to the counter to book the Tatkal ticket, however, the proof will have to be sent in the aforementioned manner.  During the journey, the passenger will have to produce original proof of identity indicated on the ticket. In future, when AADHAAR is operational, the issue of Tatkal tickets will be linked to AADHAAR.

v.   Agents / RTSAs shall be restricted from the booking Tatkal tickets at the counters between 0800 hrs. and 1000 hrs. This restriction shall be enforced through frequent inspection at the counters. The agents both web service agents and web agents shall also be restricted from booking Tatkal tickets on the internet between 0800 hrs. and 1000 hrs.

vi.  Even for internet booking for Tatkal tickets, the passenger shall enter the identity proof type and number, which is to be used for travel.  These details shall be printed on the ERS as well as the chart for Tatkal tickets.

 vii.  There shall be only four passengers per PNR for Tatkal tickets.

 viii.  The web services agents of IRCTC will be permitted to book only one Tatkal ticket per train per day on the internet.

 ix.  Cameras will be installed at the ticket counters for maintaining stricter surveillance.

Judicial secret out in open

Judicial secret out in open

Judicial secret out in open

SAMANWAYA RAUTRAY IN THE TELEGRAPH

New Delhi, Nov. 10: Former Supreme Court judge Ruma Pal today tore into the process of appointment of judges to the Supreme Court and the high courts and the lack of an embedded mechanism to ensure judicial accountability. Pal, a widely respected jurist not known to mince words, chose to put a caveat to her words: she was speaking from the “safe haven of retirement”.

“The process of appointment of judges to the superior courts was possibly the best kept secret of the country,” she said. Judges’ appointments are now initiated and cleared by a collegium of the four senior-most judges and the Chief Justice of India for the Supreme Court and three senior judges and the chief justice for a high court. Since 1993, the executive’s role has been to dutifully appoint those cleared by the collegium. The executive can return the names but has to appoint the judges if the collegium clears the list again. Pal said the criticism of appointments by the executive to the judiciary applied equally well to appointments made by judges to the judiciary.

The “mystique” of the process, the small base from which the selections were made and the “secrecy and confidentiality” ensured that the “process may, on occasions, make wrong appointments and, worse still, lend itself to nepotism”, she said. An indiscreet comment or a chance rumour was enough to rule out a person’s perceived suitability for the post, she said. Friendships and obligations also sometimes colour recommendations, she added. Consensus in the collegium is often arrived at by “trade-offs”, she said, with “disastrous effects”. Pal also lamented the growing “sycophancy” and “lobbying” which colour these appointments.

These appointments, she said, should be done by a judicial commission of non-partisan members. Unless the process is made transparent and the resource pool widened and some objective criteria laid down, “arbitrariness” in appointments will remain, she said.

There has been a good deal of talk in recent years on the judicial accountability and standards bill but it is still pending. It proposes a judicial commission made of people from all walks of life and strong representation from the executive.Pal was delivering the fifth V.M. Tarkunde memorial lecture here. Tarkunde, considered the father of the human rights movement in the country, was a lawyer in the Bombay Bar. He became a high court judge but later gave up the post to don black robes again. Tarkunde was never elevated to the Supreme Court because of extraneous reasons, speakers at the lecture said. His landmark judgment, that a person was entitled to a passport as a matter of right under Article 21 of the Constitution (right to life and liberty), was later adopted by the Supreme Court in the Maneka Gandhi case.

Pal also listed several sins of the judiciary (see chart). She called for a judicially “embedded” strong mechanism to ensure accountability. Any non-judicial mechanism will impinge on the judiciary’s independence, she said. The current solutions adopted by the judiciary — which give the CJI only the power to transfer, or not allot work, to erring judges — were inadequate and ad hoc, she said.

She described the increasing tribunalisation (the executive decision to set up specialised tribunals) as a serious encroachment on the judiciary’s independence. The judiciary, she said, had been “timorous” in not fighting these tribunals that force it to share its adjudicating powers with the executive. A government law that bars judges from foreign travel even at their own cost also came in for attack. This ensures that judges are obliged to the secretaries in various departments, she said.

http://telegraphindia.com/1111111/jsp/frontpage/story_14735972.jsp