Real Estate And Construction Laws Of Bangladesh - A Reformative Approach
Author: LawSphereX
Category: Property & Real Estate
Published:
Updated:
REAL ESTATE AND CONSTRUCTION LAWS OF
BANGLADESH: A REFORMATIVE APPROACH
Md. Tafsir Ashek, Department of Law and Human Rights, University of Asia Pacific
ABSTRACT
Bangladesh has a large amount of free space to offer adequate housing despite being one of the most densely populated countries in the world. But for the reason of lack of proper management and regulation, Bangladesh is facing problems ensuring housing for people. The troubles are not only for the public, but also for real estate developers, responsible authorities and the government. According to the data from the Bangladesh Bureau of Statistics for fiscal year 2022-23, the real estate sector’s contribution to GDP was 7. 93%. By finding exact problems through scrutinizing the laws and establishing effective measures, this percentage can increase. Also, the right of shelter for people can be protected.
As a developing country, various factors act as obstructions, but the study focuses on overcoming the barriers with the hope of raising awareness, ensuring efficiency and establishing a better future.
Chapter One 1. 1: Statement of Problem Bangladesh requires around 100,000 new apartments every year where realtors satisfies only 8% of demand. 1 Specialists suggest that one of the main reasons behind demand-supply problem is affordability. Others prominent reasons behind are currency fluctuation, complicacy of system, saturated laws and regulations, political changes, dispute over master plans, centralisation of infrastructures, financing challenge, land ownership disputes, inefficient monitoring, acquisition issues. Further, people try to avoid the law. Inadequate development authorities and lack of uniformity leads to unplanned development. In addition, the free spaces outside Dhaka isn’t used at all.
A series of actions is ongoing where purchasers are oppressed by developers, and developers are oppressed by authorities; causing sufferance against a class of people who doesn’t possess power and money. 1. 2: Literature Review The study addresses problems by scrutinizing existing enactments, provides information about reality and suggests reformation where applicable. In Chapter Two, relevant facts are briefly discussed and Chapter Three tries to link the discussion with knowledge of the economy. Methodology: The research follows qualitative method of legal research. 1. 3: Limitations The study isn’t exhaustive and faces lack of resources, participations and word limits. Further study is needed to achieve the purpose of this study. Chapter Two 2.
1: Real Estate Development and Management Act, 2010 and Real Estate Development and Management Rules, 2011 Under sec 2(5), the town development authority means Rajdhani Development Authority, 1 Sohel Parvez and Jagaran Chakma, 'Bangladesh Needs One Lakh Flats Annually' The Daily Star (9 March 2025) https://www. thedailystar. net/business/economy/news/bangladesh-needs-one-lakh-flats-annually-3842821 accessed 5 April 2025.
Chittagong Development Authority, Khulna Development Authority and Rajshahi Development Authority. Under the Ministry of Housing and Public Works, the Department of Urban Development is one of the subordinate departments and is in addition to state development authorities. The National Housing Authority, Cox’s Bazar Development Authority and Gazipur Development Authority are subordinate authorities. Under sec 4 (2) it directs that in the absence of urban development authority the concerned city corporation will act as authority in local jurisdiction. Further, the concerned municipality for its local jurisdiction, cantonment boards for its local jurisdiction. Areas outside urban development authorities, Municipalities and Cantonment Boards the National Housing Authority acts as concerned authority.
Under rule 6 approval have to be taken by developer from concerned authorities which are Bangladesh Building Regulatory Authority, RAJUK, CDA, RDA, KDA, Municipalities and Cantonment Boards. City Corporations has other various diversed responsibilities under their statutory obligations and they don’t have the special mechanism which is required to be an authority for real estate registration, permissions and other related activities. Same goes for municipalities too, they don’t have adequate qualified professionals, focus, most of the elected municipality members aren’t aware of such power, and usually worse than city corporations. They also lack legal guidance, and almost always politically influenced. Another major problem of such saturated authorities is that there is no uniformity of decisions and actions, even the organogram charts are different.
The Local Governments and Cantonment Boards are subordinate to different Ministries (Ministry of Local Government, Rural Development and Cooperatives, Ministry of Defense) from Ministry of Housing and Public Works which gives rise to more complication, difference in efficient implementation and lack soloist supervisory or monitoring body. Bangladesh have a little territory in world map and to utilize such land Real Estate matters requires close attention. The already established authorities also lack required jurisdiction, for example the Chittagong Development Authority doesn’t have jurisdiction all over the division but over district territories as determined by government including City Corporation.
2 The sec 4(1) reserves scope for establishing more than one authority, and more than one authorities are required in more than already existing districts, functions should be separated from various body and vested in one series of authority. The sec 5 of National Housing
2 Chittagong Development Authority Act, 2018 sec 1
Authority Act, 2000 also reserves scope to establish branch offices anywhere in Bangladesh. This will also clear the ambiguity for general citizens and uniform the actions. Government should take measures for development and creating opportunities in each urban area of Bangladesh and people should be inspired to joint ventures with an aim to decentralize the pressure from Dhaka. Speaking of which, for massive 24. 7 million population of Dhaka there is only one authority which is definitely not efficient enough. The concerned authority RAJUK is always on backlogs and questioned for its integrity. The Jamuna Builders Ltd. vs RAJUK3 or RAJUK vs Water Front Apartment4 cases are notable and worthy of mention to point out the negligence of development authorities. Even the Jamuna Builders Ltd.
directly accused the concerned authority for being immorally politically influenced when they were given permission under sec 75 of TIA, 1953 but not under sec 3 of BCA, 1952. There is no Ombudsman either in Bangladesh, establishment of which is constitutional obligation. In addition, in a corrupted country like Bangladesh, and where political influence is common for almost every matter, suffering of builders who doesn’t have the means to satisfy illegal interests of officials is common. On the other hand, builders who satisfies interests of related officials charge more money on customers so that they can maintain their cost and profit numbers. The profit numbers can go unreasonably higher and higher as there is no regulation or declaration as to limit those numbers.
Sec 8(4) directs that no developer shall charge extra amount beyond contract, but the market forces purchasers to agree on proposed prices of developers. There is no regulation regarding list of price of materials under rules, no basis on which price will be determined and no monitoring body over market. The government also imposes significant amount of stamp duty, registration fee, local government tax, value added tax and others which causes the price to be heavier on purchasers. In consequence only above average class can afford roof on head, but the Constitution of the People’s Republic of Bangladesh promises different under article 15. Where the main laws are silent, under sec 2 (19) of Consumer Rights Protection Act, 2009 the word “consumer” will include purchasers of plots or flats only if real estate businesses are considered as service providers.
The problems regarding authority effects the registration of real estate developers under sec 5, one of the major consequences is incompetent and unethical people obtains registration for business, which harms the purchasers afterwards. The purchasers are mostly not so aware of their legal remedy and even if they are aware the process of court costs their valuable time and
3 57 DLR (2005)
4 56 DLR (AD) (2004)
money with unnecessary suffering. Another effect is as different authorities register real estate businesses the bookkeeping of list and monitoring their activities, making any report of activities of real estate businesses, consolidation of information and taking measures in favour or against is quite challenging. Also leads to delay in issuance of registration certificate which is statutory obligation to issue within fixed time of 30 days and causes unnecessary hassle and litigations. The rules are also clear about deadline of decision regarding registration and renewal of re-registration. The law should mention the punishment of failure by authority to perform responsibilities under statute.
It is worth mentioning that interdisciplinary punishments have failed to be efficient in system of Bangladesh and people of Bangladesh want different approach as officials are punished and investigated by same authority and they mostly act bias. In addition, under sec 166 of Penal Code, punishment should be enhanced, where public servant is punished for disobeying the law and intentionally causing injury. Sec 6 (1) imposes responsibility upon developers to mention the registration number, the approval number of the plan approved by appropriate authority, along with the memorial number and date. Sub-sec 5 says designs and documents other than approved one shall be countersigned by the developer. But in practice violation of such directions has been found. The prospectus of Jahanara’s Yarrow project by Comprehensive Holdings, confirmed by the Deputy Manager Md.
Ariful Maula, didn’t followed any of those directions. The prospectus of Basic Salviya project by Basic Builders Limited which is running over 95 projects and successfully finished more than 100, confirmed by sales and marketing executive Md. Ahsan Habib, did the same with their prospectus, and also didn’t provided the full prospectus.
Indian Journal of Law and Legal Research Volume VII Issue II | ISSN: 2582-8878
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Under sec 7, any person individually or jointly, not being a real estate developer constructs real estate for purpose of buy-sell, this Act is applicable on him to the extent applicable. In the whole law nowhere the line of extent is expressly drawn, kept vague and has scopes for dispute, as many of the sections like sec 13, 15 used the word “developer” and persons under 7 (2) are not developers. Sec 6(6), 6(9) also contains vague terms as “subject to necessary amendments” and “as far as possible”. Sec 6(9) directs to protect civic amenities complying Private Residential Project Land Development Rules, 2004. The rule protects civic amenities like school, mosque, clinic, etc. Now whether every time a developer is executing a project has he protected such rights as far as possible or not is just can’t be determined specifically.
The Magistrate empowered under sec 33 isn’t specially trained or qualified, many universities of Bangladesh doesn’t teach Real Estate Laws and may not able to interpret such vague terms fairly as they lack knowledge of practical field and experience in real estate practice. If advisory body is introduced like Labour Court under Labour Act 2006, it may result fruitful but have to be remembered that the real estate developers and the purchasers doesn’t have same standard of 2M (Muscle and Money power). Bangladesh already has tons of backlogs on its shoulder of judiciary system and these terms escalate the chance of unnecessary litigations including appeal. Further, the vague terms has to be clarified. Under sec 8 (3) a developer may change the specific plot or flat allocated, with the consent of buyer.
But there is no direction or right of compensation to purchaser, as the change may affect the facilities of purchaser which he craved. Further, the developer can show false excuses or may create a situation to deceive the purchaser for its own interest to make the change happen, or where purchaser may not have any other choice. He can’t cancel either for reason of sec 17, which empower developers to deduct 10% of paid amount as incidental expenses. Sec 8(4) states that no developer shall accept payment beyond contract. But the contract price always contains the percentage of broker which causes overvalued amount to be inserted, and almost in every development project the role of brokers is seen. Overpopulation of Bangladesh, overpricing of plots/flats and unemployment are elements behind the rise of brokers and effects the real estate market.
Under sec 10, an agreement between land owner and land developer is a joint-venture agreement, which requires cooperation of both parties to be successful. But the act don’t go over details to force such cooperation. If there is dispute regarding land ownership, and if the alleged owner enforcing the contract subsequently is declared to have no right over such
property, no express protection clause for developers is inserted which may cause developers financial loss. There is no provision to comply the FIDIC standard of contract. Contracts play a significant role in real estate activities. For example, sec 15 reserves scope to escape the reasonable amount of facility offered by the law through terms and conditions of mutually agreed contract. That’s where associations like REHAB plays vital role to establish a practice of series of similar terms and conditions. There is no specific direction in law, except regarding notice under sec 14, as to the minimum standard of right which is to be protected by contract in matters of buysell, interest-compensation and on occasion of failure of parties.
Another problem arises relating to the issue of under which maximum period construction should be finished successfully, as no obligatory time limit is fixed nulling the contract. Chapter five and chapter six has totally different mechanism. Let’s take a scenario where a previously allotted plot is cancelled from one party and subsequently allotted to another party. Developers are punished under sec 22 if they violate sec 14 and cancel allotment of purchaser without serving notice 60 days before. But sec 22 doesn’t ensure that the previously allotted plot will be re-allotted to the previous purchaser. And if re-allotted, the subsequent party who acted in good faith, is now subject to dispute for right of allotment. The 50% of 5 lac as compensation under sec 35 may not stand adequate, further such is depended on discretion of court with no surety at all.
The interest rate of 10% under sec 14 isn’t subject to contract but under sec 15 the interest rate of 15% can be taken down to 1. 5% by contract. Further, under chapter six unlike sec 21, 22, 23 no specific punishment is inserted if developers fail to comply with sec 15 which deals with returning the paid amount to purchaser and compensation on such amount. Although there is indirect scope under sec 27 but subject to actions of developer. Under sec 17 developer is again bound to return paid money within 3 months, and again there is no specific punishment mentioned in occasion of violation. The REHAB influences the rules and regulations of country, so do other bodies having the power. But the opinion of public seems doesn’t matter, and if taken, are not taken effectively and the means of taking opinion doesn’t reserve scope to reach significant amount of people.
A provision for establishment of special court can be inserted (like sec 62 of Medicine and
Cosmetics Act, 2023) and can be vested with monitoring power (like mobile courts) for Building construction, real estate and other matters.
The law didn’t addressed the consequences in cases of natural disaster or price up-down of materials. For reasons of the complications of the system or market or due to reasons of unfortunate incidents, the developer may not be able to complete the project within the stipulated time in the contract, and the purchasers may not agree to extend the time either. Also, currency fluctuations and an increase in the price of materials while the project is ongoing may happen. In such cases, the Act doesn’t protect the developers, and no specified provision describing uncertainty is inserted. The Act gives indemnity to government as activities conducted under government management are excluded5. The Town Improvement Authority (Land, Plot, Space and Flat Allotment) Rules,
2024 are also silent in case of wrong by authority. The rule 7 of such reserves quota and a 1300-
1450 square feet apartment (flat) costs over 80 lac. Rule 10 states that allotted residential plot
can be inherited only by charity or heba (gift under muslim personal law). 2.2: Real Estate & Housing Associations of Bangladesh (REHAB) Copy of membership registration of REHAB has to be filled while registering to be a real estate developer, if it is a member.6 But in reality, there is no scope to escape the membership of REHAB as without membership of REHAB performing or carrying out buy-sell activities of housing business is illegal (declared by memorial of Ministry of Commerce). This image is collected from the official website of REHAB
The membership fee of REHAB is 3,00,000 tk with 25,000 tk of yearly fee. Such is insane as real estate developers are bound to pay this amount with almost no facilities or special reasons except goodwill, uniformity and direction of ministry. The major force behind goodwill and uniformity is the direction of ministry. Engineer Mahbub, an official of REHAB commented on such unreasonable fee that it is the wish of REHAB and the company by its memorandum can fix any amount of fee as they want. They even considered to raise the amount but for internal reasons they couldn’t back then, and they are still planning to execute the raise. To the question of does REHAB monitors the conducts of developers so that they comply with Private Residential Project Land Development Rules, 2004 and Bangladesh National Building Code,
2020 he answered that such is none of their business.
There is no consolidated codified organization of plot/flat purchasers to protect their rights, or advisory body or representative of public in authorities which is capable of standing against REHAB.
2. 3: Building Construction Act, 1952 and Building Construction Rules, 1996 Real Estate developers are obliged to follow the provisions of BCA, 1952. BCR, 1996 have to be followed outside Dhaka and Chittagong city, as there are separate enacted rules for such areas. 7 Sec 14 and 15 of BCA barres the jurisdiction of civil courts which gives administration arbitrary power to decide in matters of restriction on construction or improper use, direction for removal, power of removal of temporary building or building under construction, cancellation of sanction etc. This is also in contravention of the principle of separation of power. The same authority which once decides regarding an issue hears appeal, which makes the appeal null and upholding previous decision arbitrarily. Sec 13 restricts the general people to seek justice as only authorized officer can complaint before court.
The authority have to be active as well as morally strong and sane enough to perform such vast power. But as there are too many authorities, no uniform supervisory or monitoring body at all and where political influence and corruption is common; the goals of the act aren’t achieved, and can’t be achieved efficiently. Although the courts are trying to establish precedents to limit the arbitrary power of administrative officials and save opposite parties. For example, the Supreme Court established
7 Real Estate Development and Management Rules 2011, rule 6
in RAJUK vs Water Front Apartments an exception of sec 9 where sanction can’t be cancelled on ground of making statements which are not correct when a long time from issuance of sanction has passed and cancellation of sanction will cause a great loss to the opposition. It also established that a writ petition can run even when an appeal is pending under sec 15. Sec 3 imposes obligation to obtain previous sanction from authorized officer for construction. Sec 6(8) of RDMA, 2010 and RDMR, 2011 rule 6 also imposes obligation for approval from concerned authority. In Jamuna Builders Ltd. vs Rajuk the court pointed out that even Jamuna builders made application for sanction and fulfilled the conditions of law the concerned authority uphold the sanction unreasonably and violated the law. The authority could reject the application but the authority just chose to not respond.
This demonstrates the fact that how far the authority is capable of being arbitrary in practice as example. A scenerio in which sanction is rejected, as discussed above, is final and can’t be called in any Civil Court. If the appellate power is open for civil courts, especially to the special court which is proposed under this study, the developers or non-developer constructors may seem more interested to abide law, as one of the core reason for violation of law in Bangladesh is the sufferings caused by the law and the system. The Act, under sec 1, only forcable in certain areas which are mostly divisional cities. Further, government may withdraw forcibility of this Act from any area. The law doesn’t mention the consequence of authorized officer if he fails to perform his duty.
Under sec 17, government and any person is given indemnity from suits or legal proceedings subject to good faith, reserving scope to escape the obligation of compensation. However, there is no provision of compensation under this Act to compensate the aggrieved where damage is caused by authorized officer whether in good faith or not. This may cost a constructor fortune, and such cost may arise as nowhere close enough in any scenario possible happening in Bangladesh where the authorized officer or concerned authority or government is the aggrieved. The Act totally ignored environment issues which may cause from construction or demolition of buildings, no specified procedure to save the environment.
The specified rules applicable in Dhaka and Chittagong is Dhaka Metropolitan Building (Construction, Development, Preservation and Removal) Rules, 2008 and Chittagong Metropolitan Building (Construction, Development, Preservation and Removal) Rules, 2008.
New drafts for Dhaka Metropolitan Area were passed in 2023 and 2024. Such rules were enacted under sec 18 of BCA, 1952. The tension regarding laws between REHAB and RAJUK is always in hype. For example, REHAB issued a press release commenting that Dhaka Building Construction Rules is not practical, and urged to the government to involve in finalizing the proposed rule.8 They also commented that proposed 2024 rules will increase the house rent and apartment price.9 REHAB threatened of taking tougher actions unless National Building Code is amended within
15 days, and expressed anger regarding existing construction rules.10 The purchasers are
suffering from these disputes, as the market isn’t stable so do the laws. Government itself isn’t involving directly to solve disputes either. REHAB alleges that new rules will increase the price but their actions show till now they didn’t took initiatives effective enough to decrease the price in market, including not fixing any uniform amount and the unreasonable fee they charge. Under specified rule for Dhaka the approval from authority is given of Land Use Clearance and Special Project Permit (where applicable), Building Permit and Occupancy Certificate (in all cases). The town development committee hears appeal and monitors, controls the construction process 11 which being under the same authority which sanctions and approves. Under rule 58 (a:2) the minimum height of a habitable room have to be 2. 75 meter. By this measure a 6 storied building’s height should be 16.
5 and of 7 storied it should be 19. 25. Under rule 24 any building over 18 meter should have lift. Some pictures taken on 02/04/2025 in Dhaka of buildings which doesn’t have lift, exceeding the height of 18 meter according to calculation: 8 FE Report, 'Involve Realtors in Finalising Building Construction Rules' (The Financial Express, 23 April 2024) https://thefinancialexpress. com. bd/national/involve-realtors-in-finalising-building-construction-rules accessed 5 April 2025.
9 Ibid
10 FE Report, 'Building Code Revision: REHAB Threatens Tougher Action' (The Financial Express, 19 March 2025) https://thefinancialexpress.com.bd/others/building-code-revision-rehab-threatens-tougher-action accessed
5 April 2025.
11 Dhaka Metropolitan Building (Construction, Development, Preservation and Removal) Rules 2008, rule 36, 37
Under rule 52 height of buildings are subject to permission of Civil Aviation. Two land possessors where lands were side by side asked permission, one was permitted to build up to
14 storied building and another one was permitted up to 9 storied building.
Pictures taken on 03/04/2025, Location: Mirpur Rule 67 states that proceedings taken under repealed Rules shall be deemed to have been taken under this Rule. In draft of 2024 rule published in RAJUK official website width of adjacent road is relaxed to 1. 80 meter for densely populated areas. Rule 68 directs that if conflict arises between such rule and code (BNBC, 2020) the rule will be prioritized. These separate enactments should be consolidated, as easy access to information through well classified law will escalate awareness among people. 2. 4: Town Improvement Act, 1953 Sec 4 states that the chairman and others (not more than five) shall be appointed by the government with such terms and conditions it determines. As government appoints, they appoints people who are politically influenced and who supports their ideology, even there is other comparatively more capable candidates.
The rule 4 of Capital Development Authority (Officers and Employees) Service Rules, 2013 states that in case of direct appointment and promotion such is subject to recommendation of selection committee, which committee is also formed by RAJUK itself. These directions barriers for young qualified talents who wants to
serve the people for good through being a part of RAJUK, as chance of situation where nepotism arises and officials can’t be easily removed takes place. RAJUK isn’t a business corporation which are determined to take any measure for profits, rather RAJUK is established for service and in a country where 72% people think that government corruption is a big problem12 no authority is determined to take any measure for ensuring welfare of people. It can be said that the government is the biggest extortionist as in almost every matter for which government is responsible, can’t be done without some kind of exchange of benefit. The people of Bangladesh is out of opinion that the structure of ministries and services should be changed and new reformative approaches should be taken. 13 Under sec 73, RAJUK is responsible for preparing master plan for is local jurisdiction.
Under sec 75, if any person desires to use land not complying the master plan, he may seek permission to the Chairman. If application is refused by chairman unreasonably, the appellate body is the katripakkha which again consist the chairman, who may upheld the previous decision. The appelate body should be separated from decision making body of first instance, as previously discussed while discussing other laws. In Writ Petition No. 1534 of 1999 in the view of the decision of the apex court in 6 MLR (AD) 68, Mr. Islam submitted that to change layout plan complying with formalities of changing Master Plan isn’t necessary, which gives an arbitrary benefit to act. The expression ‘lay out’ plan isn’t defined in this act.
In RAJUK vs Jahan Ara Begum14 RAJUK called for acquisition, paid compensation money, then re-called to return the compensation money but didn’t complete the process of derequisition. The court passed judgement against possession of aggrieved. The case can be used as an example of harassment by government and RAJUK. The Detailed Area Plan (DAP) of Master Plan is changed again and again, and every time when plan was issued implementation was less than 10%. The DAP for 2022-2035 faced cut and tears several times and planners believe that repeated amendments are done to ensure interests
12 Transparency International, 'Bangladesh' (Transparency.org)
https://www.transparency.org/en/countries/bangladesh accessed 5 April 2025.
13 MD. TAFSIR ASHEK, RECONSTRUCTING LAW AND DEMOCRACY FOR FUTURE BANGLADESH,
INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (4) OF 2024, PG. 716-734, APIS – 3920 – 0001 & ISSN –
2583-2344.
14 61 DLR (AD) (2009)
of businessmen which will increase crisis of habitual. 15 As many times RAJUK changed provisions of height of building or FAR (Flat Area Ratio, a major tool to control density) it faced disputes and criticisms. For example, developers and non-developers were restricted from constructing more than 4/5 storied building if sufficiently wide road isn’t linked with plot, but after facing objections from developers RAJUK set aside their decision. 16 When revised DAP increased building height limits, urban planners and Institute fort Planning and Development expressed profound apprehension. 17 Dhaka Landlord’s association expressed threat of strict action over DAP and demanded construction of buildings as per Dhaka Metropolitan Building Construction Rules, 2008. 18 The Institute of Architects Bangladesh alleged RAJUK of violation of laws, lack of transparency and potential environmental harm.
19 Even REHAB is in support of revision Urban planners commented that the amendment done under pressure of housing business groups will significantly decrease the livability of Dhaka. 20 The latest news is the revision of DAP is delayed as advisory council committee failed to agree on several issues. 21 The necessity of taking opinions from public and local governments and offering them chair in discussions remains out of syllabus. It is clear that if DAP is published or remained with such disputes in force, there will be a lot chaos and sooner or later will be changed again. If demanded facility isn’t given to the developers through DAP, opportunity of same should be provided outside Dhaka’s densely populated areas.
And to decentralization of Dhaka creation of opportunities beyond Dhaka is necessary by government with help of business institutions, statutory bodies, non-government organizations and others. The way RAJUK is changing their enacted rules and DAP is threat and discouraging to developers and constructors. Further, as their published Detailed Area
Plans were alleged for violation of DMDP Policy, Water Conservation Act, Environment Conservation Act, Ramsar Covention (1971)22, RAJUK have to be more careful while enacting new rules and plans so that uniformity is maintained and doesn’t arise conflict with local governments. The DAP 2022-2035 published on August 23, 2022 validated all proceedings taken under published Master Plan of 22 June, 2010. Such provisions restricts the re-organization of city area, although necessary to protect the builders. Here, a solution have to be pointed out. DAP 2022-2035 is published with the advice of Sheltech Private Ltd. (developer business) and Development Design Consultants Ltd, but not with advice of a committee selected from public or with consultation of local government, which effects the plan.
The tenders published under sec 29 is almost always given to those who have political connections and in who don’t have political connections they are subject to bribe, and there are thousands of examples and gossips in city localities of Dhaka. These people just destructs the projects and doesn’t care about people at all. While giving tender regarding a development project of a local area, the opinion of people of that locality isn’t taken and no body of general public is given responsibility to monitor development of their locality. The local government’s reputation is such that a chairman is recently alleged for misappropriation of money of 14 thousand crore through 49 different bank accounts. 23 Further, no condition for ensuring sustainable development is inserted. 2.
5: Private Residential Project Land Development Rules, 2004 Almost no space is left in the heart of Dhaka city for developers to build joint-venture projects. Developers having a hard time to find out free spaces and big private residential projects playing an essential role to ensure the availability of housing. The projects of Aftabnagar (Jahurul Islam CIty) and Dehrun in Savar by Easter Developers Ltd. are prominent among those. In Aftabnagar, the average price of per square feet area is almost 9,000-12,000 tk. Various factors play behind such high pricing. For example, under rule 9, 30% of whole project is not salable (amended in 2015 opening scope for developers to sell these 30% which were 22 Segufta Hossain, 'Detailed Area Plan and Its Impact for Dhaka City' (2018) 39(4) BIISS Journal, Bangladesh Institute of International and Strategic Studies (BIISS), Dhaka.
23 Araihazar Representative, ‘UP Chairman Lak Mia’s 49 Bank Accounts Hold Over 14,000 Crore Taka’ Jaijaidin (7 March 2025) https://www. jaijaidinbd. com/wholecountry/536713 accessed 6 April 2025.
reserved to ensure civic, utility and other facilities). By amendment of 2012, the entrepreneur registration fee was set to 50,000 tk and renewal fee was set to 25000 tk. In addition, for approval of project fee was fixed of 10,000 tk for each acre, in original rule of 2004 which was
3000 tk. The amendment of 2012 also inserted directions for roads, complying which costs
almost 25-30% of total project land. On other hand, average available roads in Dhaka city is just 6%. The developers are forced to raise the price, and in consequence housing is only for upper class people. A RAJUK employee confirmed that approval of certain projects took more than 6-7 years as going through over all legal records and history is complicated process. Further, final approval of project is under power of committee constituted under ministry. Which causes entrepreneurs to sell plots before getting approval, and approved plots are sold by developers beyond reasonable price, as such price have to be higher than non-approved plots and the cost of risk is added. The condition of 5 acre inside City Corporation and 10 acre outside City Corporation24 creates monopoly as many developers don’t have the asset to buy such amount of land.
Any of the laws or rules doesn’t guarantee special consideration for middle class, lower-middle class or lower class people. But the labours who work under a rich man also have to live in Dhaka and has right to housing. Economic exploitation is everywhere violating the principle of socialism of Constitution. The concept for reservation for lower-class people has already been introduced as new proposed medical ordinance of 2024 under sec 30. Although as developers can offer less to poor so that they can earn minimum profit, those offers won’t be adequate with the available demand and the culture of bribe will take place, which will again deprive the poor from special facilities. The procedure for monitoring under this rule to oblige developers to maintain their construction according to approved lay-out plan, and to accomplish other purposes of rules is absent.
No procedure for public hearing, participation and taking opinion of city dwellers is mentioned. 2. 6: National Housing Authority Act, 2000 The authority was established to solve the housing problems in urban and rural areas. One of its core function is to facilitate low cost and helpful housing including rural housing plans, also to ensure housing for helpless people. But due to poor management and political corruption,
24 Private Residential Project Land Development Rules 2004, rule 8
the authority has no significant function in practice at all. Many flats are given away to or by direction political leaders and the lottery process remains in question as it isn’t done by public themselves in public. And many lands are not properly managed by authority which is its obligation, and such lands are enjoyed by illegal possessors. A land under management of National
Housing Authority which was enjoyed by illegal possessors over decades. Under UN HABITAT The Right to Adequate Housing Fact Sheet No. 21 (Rev. 1) the right to adequate housing means preventing homelessness, prohibiting forced eviction, acting without discrimination, focusing on the most vulnerable etc. None of these is ensured through the actions of National Housing Authority. The flats of Mirpur-9 section are priced 5,096 tk per square feet which is not affordable even for middle class people. The Jhalkathi (Nolchiti) project in rural area of Barishal charges 9% interest on every installment of payment. The Mirpur-16, Chapainawabganj (Rajshahi) projects are subject to quota and these quotas are for government employees, freedom fighters, businessmen, doctors, journalists (no quota for helpless people).
In Chapainawabgonj project price per katha is higher than 5 lac which is not so helpful for local dwellers whether rich or poor regarding the location. The NHA, especially in rural areas, exists just with its name, and not with its works. The Collection of Laws and Regulations- 2025 published by authority expresses that they have reached only 23 districts of
64 districts till now with their plans.
The Government is alleged of several forced eviction, arbitrary arrests, ill-treatment towards public violating inherent rights of shelter, life and others. Writ Petition no. 2760 of 2008, 3841 of 2013, 1778 of 1999, 6252 of 2001, 2935 of 2002, 567 of 2003, 3326 of 2003, 7069 of 2003,
5194 of 2004, 5298 of 2005, 6302 of 2007, 6385 of 2007, 10380 of 2007 are prominent cases,
which illustrates the actual picture behind ensuring housing.
Under sec 24, responsible officials are indemnified from any legal action against them if those are done in good faith. Beside the principle of equality before law and the incomparable power officials possess differing from general individuals, the good faith clause reserves scope for twisting the facts. The National Housing Policy, 2016 is a set of what to be done, but not how and when to be done. 2. 7: The Playgrounds, Open Spaces, Gardens and Natural Reservoirs Conservation Act, 2000, for all municipal areas of the country including metropolitan cities, divisional cities and district cities. Under sec 6, if any area is designated as playground, open space and others, and such areas are in need to be developed (changed) by any person, an application have to be made to government through concerned authority (RAJUK, CDA, KDA, Local Governments etc).
Such designations refers to the stated designation of Master Plan. So, id there any mistake in Master Plan or if RAJUK changes designation of any plot over which an individual have legal housing interest, such individual will have to go through complicated process of system and may cost him unnecessarily. Worthy of mention, master plan directs regarding how lands shall be used, and any use contravening such direction is unlawful25, which gives arbitrary power to declare any residential area to be used as park or open space. Also, TIA, 1953 gives RAJUK the power to order re-laying out of an area, demolition, alteration or reconstruction for improvement; also contains phrase ‘any other matters’ consistent with this act, under which RAJUK can make and force any rule.
26 When framing an improvement scheme, RAJUK is not bound to consider loss of individuals, although have re-housing scheme which not protects middle class people and uses the word ‘may’ instead of ‘shall’. 27 This Act doesn’t direct the developers to enhance the amenities and to take measures for improvement of natural reservoirs, open spaces. 2. 8: Environment Conservation Act, 1995 and Rules, 1997 The area plan of Hazaribagh and others beside Buriganga isn’t changed at all, rather escalates industries to suck the life of river, contravening the outcome of Dr. Mohiuddin Farooque vs
25 Town Improvement Act 1953, sec 73, 74
26 Town Improvement Act 1953, sec 40, 102
27 Town Improvement Act 1953, sec 39, 42
Government of Bangladesh and others (WRIT PETITION NO. 891 OF 1994, 22 BLD) where the court directed to shift the tanneries from Hazaribagh, and if not shifted to be closed. Further, the Buriganga, Sitalakhya, Balu and Turag rivers were declared as Ecologically Critical Area in 2009 under sec 5 of Conservation Act, 1995 and Rules, 1997. The environment authorities are not efficient enough to ensure the protection of environment and to oblige industries to follow enacted rules. Also existing rules also need major reforms, and under existing circumstance the city will face more deterioration. The Map of Plan beside the areas of Buriganga River is collected from official website of RAJUK.
use of resources where only 5% of recyclable waste is actually recycled. 28 Condition of insertion of sewage treatment plant and similar others in private residential projects or if possible in every project can be introduced. Also the concept of green building should be adhered in every building to achieve the goal of zero carbon omission. Bangladesh is a signatory of Agenda 21 of Rio Declaration and should impose mandatory condition to ensure sustainable development, and government should facilitate with equipment and technologies or sign with foreign countries, companies for cooperation. 2. 9: Bangladesh National Building Code, 2020 Under sec 10, an authority is proposed to be established called Bangladesh Building Regulatory Authority to protect the city from disasters which isn’t established till now to enforce the Code containing 2464 pages.
Under sec 14, such authority is responsible to establish Office of the Building Official, which shall exercise through Building Construction Committee (sec 15) over Bangladesh (sec 17). The Building Officials are vested with power of a law enforcing officer, and responsible for all necessary notices to correct illegal or unsafe condition, to receive applications for any erection, construction, addition, alteration, modification, repair, improvement and to issue permit; but won’t engage in business, planning, design construction and such others. They won’t be personally liable for any damage caused in discharging their function and the Building Official also won’t be liable for costs in any legal action, suit or defense proceedings.
29 These provisions need to be implemented as soon as possible to establish uniformity in building structures and ensuring public safety with necessary facilities. Especially in rural areas, most of the constructions are erected without sanction and complying any rules at all. The municipalities surely aren’t capable of approving designs and lay-outs. The officials are given indemnity so that they won’t fear the costs, but as the authority isn’t established the people should be more aware and participate more in recruitment process to ensure that qualified and non-political persons hold office. But there is a chance of causing more delay and chaos as there is now more authorities involved, including politically elected representatives of city corporations and municipalities.
One may get influenced by another and surely reaching to a consensus regarding an issue will be far more challenging. Furthermore, 28 Mahmudul Hasan Mishon, ‘Unlocking Bangladesh’s Recycling Potential: Transforming Waste into Economic Opportunity’ Textile Focus (28 October 2024) https://textilefocus. com/unlocking-bangladeshs-recyclingpotential-transforming-waste-into-economic-opportunity/ accessed 6 April 2025.
29 Bangladesh National Building Code 2020, sec 19, 20, 21
the conflict between Code and existing Rules can be devastating. The rule 68 of DMBCR, 2008 states that in case of conflict between Code and rules the rules shall be prevailed. In that case, RAJUK will have the power to run situations as discussed above no matter how good the Code is. In matters regarding which the Rule is vague, the Code will be prevailed, but no specification of under which authority such will be regulated, BBRA or RAJUK. The Code have remarkable features such as it classified Bangladesh in several regions, took the flood, surge wind and earthquake factors in consideration and gave different directions for specifically different regions as applicable. It directed about the standard of materials such as size of bricks, minimum amount of cement with slump standard for concrete, steel, timber etc.
It gave direction of how the prestress of reinforcement should be done and conforming which ASTM (American Society for Testing and Materials) standard. The Code also requires installation of different fire protection system for different buildings based on purpose. But in general no one can master a Code over 2000 pages, and the engineering universities teach a fraction of Code with fruitful techniques. But diploma institutes are falling behind, so do many law colleges and departments. If legal professionals aren’t versed with Code, they can’t fight for public, and there will be less protestors to express opinion of right and wrong. The curriculums should be changed, and training institutes can be established. The BNBC has the scope to re-structure the disorganized old town of Dhaka and to order removal of unsafe/hazardous buildings under sec 4. Chapter Three 3.
1: Effect of alleged reformation on economy Firstly, if the plot or flat price is under affordability of middle class people, the country will face incredible boost in the demand of housing as almost every citizen dreams of having their own address. Secondly, for reason of currency fluctuation people already seek to invest in real estate, and such investment market will also face boom. Thirdly, a new market may arise for middlemen where they will buy apartments at affordable price and will sell at higher price later. Fourthly, political stability and surety of justice will escalate the foreign investments. Fifthly reformation in system, creating example of integrity in front of people, better and speedy protection under law and raise of awareness will escalate the development process and interests of every party.
Sixthly, sustainable development will abolish the fear of reconstruction or
modification, and will ensure development for long run including saving energy and culture of futuristic thinking will be established. In the first case, the demand will decrease, and real estate businesses will lose their scope in a few years. Further, if there is not enough profit ratio, businesses will be less interested in real estate. To maintain the significant role of real estate in the economy, opportunities for local people residing outside Dhaka have to be created in cities outside Dhaka, so that real estate investors can find opportunity in rural areas. The earnings have to be increased for lower-middle class people, and to do so the mass population have to be well-educated and skilled so they can be used for utilization. The opportunity for invention and international trade has to be established.
To implement this, the government will have to invest large amounts in productive welfare, and will have to relax interest rates on loans and taxation in required sectors as necessary. Furthermore, political stability, currency stability and a long, strong focused plan is mandatory. This way, the demand won’t decrease as Bangladesh has a massive population, unemployment will decrease, the standard of living will increase and the tendency of citizens to flee from the country will decrease. In the second case, the materials relating to construction have to be affordable. Monopolies have to be abolished, and if discussion of the first case is fulfilled, an industrial boost regarding construction materials will take place subject to low-interest loans on such investments.
Stable import-export relation have to be established, and a market monitoring authority should be solely responsible for stability of demand-supply to control inflation-deflation. The Central Bank will have to take policies with advice of such monitoring authority. In the third case, the new market can play an essential tool to control the demand-supply of plots/flats. Despite solving unemployment problem, a fixed profit percentage can be imposed on such class of middlemen so that when it is necessary to decrease the demand, the percentage can be fixed at higher price and vice-versa. Such may increase the amount of offices of brokers and consultants. In the case of investors, the government may restrict such opportunity when it is deemed to be necessary. In such way, the economy will grow and basic human rights will also be protected.
In the fourth case, foreign investments will decrease unemployment, increase GDP, can facilitate with modern technologies and high quality materials and scope for mixed culture will be created. However, government will be bound to control such foreign investments through its policies to ensure that local businesses aren’t deprived. In the fifth case, speedy development will effect in almost every sectors of country and soon from developing country Bangladesh will become a developed country. In the sixth case, effective sustainable development will increase the savings and investments as there will be no unnecessary cost for a long run. And where savings
and investment rate are high, government can earn adequately by imposing higher tax and can ensure welfare benefits. Above all, morality of every sector, every class of people and every individual have to be purified. Nationalism is extremely required.
3.2 The Barriers in economic growth:
Corruption and low standard of ethics, lack of nationalism, lack of transparency in government works, inefficient laws, bureaucracy and red-tapism, Absence of special ministry dedicated to improvement of economy, existing system of ministries and authorities, vast power of Bangladesh Bank, lack of specialists, lack of serious promise towards Fundamental Principles of State Policy, unplanned business sectors and inadequate regulation. 3. 3: Conclusion Without consolidation of every existing law under a single well classified Code and ensuring easy access awareness can’t be raised. The authorities and people have to come forward together, so do the government and local governments. Powers should be vested specifically and structurally so that conflict doesn’t arise. The ethical development and cooperation is needed. Enough direct attention of government is requirement.
The implication of plans and policies have to be ensured and dedicated promise towards gradual growth is mandatory. Bangladesh have to convert their crisis into opportunity.