Develop affordable houses, not malls: Government to realtors

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"It is not advisable to invest largely in shopping malls as of now. What we need today is affordable housing. We are still short of 24.7 million houses in cities and towns," Minister of State for Urban Development Saugata Ray told real estate developers at a function organised by the Confederation of Indian Industry.

He said the government was making all efforts to make home loans and housing within the reach of the common man.

"We have already proposed to the government to cut interest rates on home loans," the minister said adding that the government already has the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme for affordable housing which has a corpus fund of Rs.1 trillion for a seven-year (2005-12) period.

The government is also short of meeting the target for affordable housing by the end of the ongoing 11th plan period which ends in 2012. "We need Rs.3.61 trillion for meeting the demand of affordable housing."

Ray also warned real estate developers not to fleece people and fulfil the commitment made to them.

"The real estate does not fulfil the promises. You have to improve your image and deliver on your commitment. In the absence of any law on compulsory disclosure norms, real estate developers are taking innocent home buyers for a ride with misleading advertisements," he said.

He said that due to lack of an effective legislation, the government has not been able to control such practices. "The legislation for this is pending in parliament. We are hopeful that it would soon take shape," the minister said.