Lok Sabha Question No. 865 (UNSTARRED), answered on 2020-09-17
Subject: ARHC Scheme
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: Jayanta Kumar Roy, Sukanta Majumdar, Vinod Kumar Sonkar, Sangeeta Kumari Singh Deo, Bhola Singh, Raja Amareshwara Naik

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 865 TO BE ANSWERED ON SEPTEMBER 17, 2020

## ARHC SCHEME

NO. 865. DR. JAYANTA KUMAR ROY:

DR. SUKANTA MAJUMDAR:

SHRI VINOD KUMAR SONKAR:

SHRIMATI SANGEETA KUMARI SINGH DEO:

SHRI BHOLA SINGH:

SHRI RAJA AMARESHWARA NAIK:

## Will the Minister of HOUSING AND URABN AFFAIRS be pleased to state:

- (a) whether  the  Government  has  recently  launched  Affordable Rental  Housing  Complexes  (ARHC)  scheme  for  migrants  and urban poors and if so, the details thereof;
- (b) whether  the  Government  is  considering  reforms  to  increase efficiency and transparency in property tax collection by Urban Local Bodies (ULBs) to improve revenues and make them self-
- reliant and if so, the details thereof;
- (c) whether the Government is planning to examine the demands of  housing  industry  regarding  change  in  income  tax  law  to enable builders reduce their selling prices of apartments and if so, the details thereof;
- (d) whether the Government has suggested the State Governments to reduce the stamp duty on properties; and
- (e) if so, the details thereof including response received so far and steps being taken by the Government in this regard?

## ANSWER

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE

MINISTRY OF HOUSING AND URBAN AFFAIRS

(SHRI HARDEEP SINGH PURI)

- (a) Yes,  Sir.  Affordable  Rental  Housing  Complexes  (ARHCs),  a  subscheme under Pradhan Mantri Awas Yojana - Urban (PMAY-U) has

been  launched  on  31.07.2020  for  providing  accommodation  at affordable  rent  to  urban  migrants/  poor.  This  Scheme  will  be implemented through the following two Models:

Model-1:  Utilising  existing  Government  funded  vacant  houses  in Private cities by converting them into ARHCs  under Public Partnership mode or by public agencies.

Model-2: Incentivising Private/Public Entities to construct, operate and Maintain ARHCs on their own vacant land.

- (b) Ministry of Housing and Urban Affairs (MoHUA) has undertaken a study of property tax and identified best practices in property  taxation.   A  toolkit  comprising  best  practices and  other reforms identified has been prepared with actionable recommendations and step-wise implementation plan for undertaking property tax reforms in States and Urban Local Bodies (ULBs).   These reforms are aimed  at bringing efficiency and transparency  in  the  system  and  enhance  the  resources  available for ULBs.

Further, in order to support States and ULBs in implementation of these  reforms, MoHUA has  launched  a  portal  in  June  2020  as  a National portal on municipal finance to facilitate peer benchmarking  and  comparative  analysis(www.cityfinance.in). This portal has already over 3,000 annual accounts of over 1,700 ULBs.

- (c) Department of Revenue, Ministry of Finance has reported that there is no such proposal under consideration.
- (d)&  (e)  MoHUA  has  suggested  the  States/Union  Territories  (UTs)  to exempt or make provision for nominal charges against stamp duty to Economically Weaker Section (EWS)/Lower Income Group (LIG)houses under PMAY-U.In addition, States have been requested to exempt any Registration Charges or additional Stamp Duty on inclusion of female member of the family in existing registered title document of the house. So far, no response in this regard has been received from the States/ UTs.

Further, in view of the impact on real estate sector due to COVID19, States have been requested to reduce the conveyance deed to incentivise  purchaser  of  houses  and  thereby  boost  economic activities.

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