Page 18 - Banking Finance July 2020

HOUSING

HOUSING

NEWS
NEWS
NEWS
NEWS
NEWS

Model tenancy law to be opers could also convert their unsold Demand for task force to
inventories into rental housing.
approved within a month: implement affordable
The ministry had floated the draft
Housing secretary model tenancy law in July 2019. It pro- rental housing plan
In a bid to boost rental housing, the poses to establish an independent au- The Union Cabinet has approved a
government will be approving the thority in every state and Union Terri- scheme to provide affordable rental
model tenancy law in the next one tory for registration of tenancy agree- housing complexes (ARHCs) to urban
month, housing and urban affairs sec- ments and even a separate court to migrants and poor as a part of the
retary Durga Shanker Mishra said on take up all tenancy-related disputes. Pradhan Mantri Awas Yojana. Experts
August 26.
The draft model tenancy law has pro- say setting up a task force with a panel
He hoped that the states would pass posed limiting the advance security of experts would be the most effective
the legislation over the next one year. deposits to two months' rent, and has way of implementing such a scheme.

He was speaking at an Assocham also suggested heavy penalties for ten- The implementation of the lockdown
webinar on "Housing for All- Affordable ants who decide to overstay. Those saw a large number of migrants head
and Rental Housing: The Way For- who do may have to shell out double back to their villages due to employ-
ward". the rent for two months and even four ment opportunities drying up and high
times.
"We are changing the tenancy law… cost of living in the city.
The model tenancy law will be ap- On the Affordable Rental Housing Com- In this latest episode, Ashoo Gupta,
proved in a month by the competent plexes (ARHC) scheme, Mishra said the partner at Shardul Amarchand
authority. My ministry would ensure programme aims to convert lakhs of Mangaldas and Co, and an affordable
that within one year every state passes vacant flats owned by the Centre and housing expert speaks to us on the
legislation to implement this model states into rental housing for migrant scheme and its ramification.
law," Mishra said. workers at a very cheap rent.
"It's a very good initiative by the gov-
The secretary said the current tenancy "We want to bring vacant homes ernment because sustainable home
laws in various states were skewed owned by the central, state and urban ownership for all is neither financially
towards safeguarding the interest of local bodies into this scheme and pro- nor economically possible. Thus this
tenants. vide affordable rental housing to mi- scheme offers a window for housing

"We hope that 60-80 per cent of the grants/urban poor," he said. affordability and a place thereby im-
vacant flats will come into rental mar- The secretary said the scheme would proving the housing conditions for EIW
ket once this law is implemented," he generate a return of 13 per cent to and LIG sections. While it is a very
said, adding that the real estate devel- make it financially viable. good policy and comes at the right

18 | 2020 | JULY | BANKING FINANCE