NITI Aayog pushes urban governance reforms to improve services, ease delays for homebuyers

MUMBAI: If you have been waiting months for a building approval, facing irregular water supply, or dealing with delays in a housing project despite paying EMIs, relief may come through a new push for urban governance reforms. NITI Aayog on Saturday released a roadmap aimed at addressing everyday issues faced by urban residents and homebuyers by strengthening city governments in India’s million-plus cities. The report, titled “Moving Towards Effective City Government”, was unveiled by Union housing and urban affairs minister Manohar Lal Khattar. It focuses on problems that often lead to poor civic services, project delays, and weak accountability. Why this matters For many residents, common issues include delayed housing possession, multiple authorities handling basic services, and lack of clarity when problems arise. The report identifies these challenges as the result of fragmented governance, weak finances, and overlapping responsibilities. In several cities, services such as water supply, sewage, transport, and housing approvals are managed by different agencies.

This often leads to delays and a lack of accountability. The proposed reforms aim to bring these services under a single, accountable city authority. What could change The report suggests introducing directly elected mayors with fixed terms. This is expected to make city leadership more accountable to the public rather than to state governments or bureaucratic systems. For residents, this could result in faster decisions on civic issues, clearer responsibility for delays or service failures, and more consistent long-term urban planning. It also recommends integrating essential services such as water, sanitation, and public transport under city governments, which could reduce delays and confusion. Impact on homebuyers The recommendations are significant in light of data from the Real Estate Regulatory Authority (RERA), which highlights the scale of housing activity and disputes across the country. India has more than 1.12 crore registered housing units across projects, with around 1.91 lakh complaints filed by buyers.

Although many cases have been resolved, delays and disputes remain a major concern. In Maharashtra, the country’s largest real estate market, over 54,000 projects are registered, covering nearly 48 lakh housing units, along with a large number of complaints. Experts say poor coordination at the city level often leads to delays in approvals, infrastructure connections, and occupancy certificates, directly affecting homebuyers. Funding challenges The report also proposes strengthening municipal finances through increased local revenue generation, timely transfers from states, and access to municipal bonds. Better-funded city bodies could improve roads, drainage, public transport, and speed up infrastructure linked to housing projects. The bigger picture The report states that urban growth is key to India’s goal of becoming a $30 trillion economy by 2047.

However, without improving governance at the city level, both economic potential and quality of life may remain limited. Rajiv Gauba said the biggest gap today is the absence of “true city governments” with real authority. What happens next The roadmap calls on states to amend municipal laws and align governance systems. It also suggests a phased rollout to test reforms before expanding them nationwide. For urban residents, the success of these reforms will be judged by real improvements, including faster civic services, fewer project delays, and stronger accountability.