Centre to introduce new law to tackle discrimination against flat-buyers

The Modi government is set to introduce an anti-discrimination clause in rules under the Real Estate Act, to ensure that builders do not refuse to sell their apartments to buyers on the basis of religion, caste, sexual orientation, marital status or dietary preferences.

According to a report in the Indian Express, The Real Estate (Regulation and Development) Act, 2016 (RERA), passed earlier this year has paved the way for setting up a regulatory authority and tribunal to regulate all transactions between buyers and sellers. There will be punitive action for violations. The Ministry of Housing and Urban Poverty Alleviation (MHUPA) is expected to notify the rules under the Act by October 31.

A ministry official told the Indian Express that since the Constitution itself provides for non-discrimination, a new clause will be inserted into the rules. However, the clause will not mention the exact nature of discrimination, because it might inadvertently exclude some kinds of discrimination.

Once the rules are notified, those affected can approach the state-level regulatory authority, followed by the appellate tribunal.

Under the RERA, builders failing to adhere to the tribunal’s orders are liable to face imprisonment of up to three years and/or a monetary fine.

However, Congress MPs Kumari Selja and Rajeev Gowda had demanded during the passage of the bill that an amendment should be made to the Act itself.
But RERA will not cover the agreements between tenants and landlords – only between builders and home-buyers.

The urban ministry is deliberating on including a similar anti-discriminatory clause in the draft model Rental Housing policy, but says that it will not be able to enforce such a rule on privately-held property.

This would be the first time that India is bringing into force such an anti-discriminatory provision in its housing sector. Many countries in the west already have extensive anti-discrimination provisions.

In India, especially in cities like Mumbai and Delhi, housing apartheid has become common, with apartments denied to Muslims, singles and even non-vegetarians.