Law on real estate business soon

The government is set to introduce an Act on Real Estate business to control haphazard urbanisation through regulations that allow the transaction of only the plotted lands."In the absence of relevant laws on Real Estate business, the people have adopted the practice of purchasing small land, especially in areas having farms to make houses,"said Purna Kadariya, director general at the Department of Urban Development and Building Construction (DoUDBC).

"We have made all preparation to send the draft of the Act to the parliament to pass it,"he said. "The rampant urbanisation will be stopped after its enactment, he added.He said that the Act would make provisions requiring the people willing to run the Real Estate business to register their firms in the government offices including the Company Registrar's Office and Tax office."They should also ensure that that the land was well plotted and had no legal problems,"Kadariya said.

The Real Estate dealers are not registered with any government office and the government has been unable to collect any tax from them against their income.Highlighting the feature of the drafted Act, he said if anybody wanted to develop a plot for more than 50 families and he or she didn't get the way to reach the plot, the government would encroach the land to construct the road there.

"The government can help the plot developer to develop the land by not compromising the size of the land even if there is sewerage as per the provision of the draft Act,"he said."The Act will benefit the state to develop planned urbanisation, collect tax through which people are assured of good plot,"Kadariya said. "The businessmen get benefit of bank loan easily and they need not conduct their work secretly,"he added.