 "Parliament passes real estate Bill")
There’s good news for home buyers. Real estate regulator will be a reality soon as the Parliament gave its nod to the Bill today.
The Real Estate (Regulation and Development) Bill, 2013, was approved by Lok Sabha today, five days after it was passed in Rajya Sabha.
The bill seeks to create a set of rights and obligations for both the consumers and developers, according to an official statement. It will make mandatory for developers to set aside 70 per cent of sales proceeds from a project in an escrow account and compulsory approvals prior to project launches. Developers and buyers will be paying same interest rate on defaults.
Minister of Housing and Urban Poverty Alleviation Venkaiah Naidu said after passage of this Bill, existing/ongoing projects would not come to a standstill. It does not provide that the existing projects should stop all operations until complied with the provisions of the Bill.
A window of 3 months from the date of commencement of the said clause/section has been given to the promoters for registration. The developers need to to specify the project details of such apartments so that prospective buyers will make informed choices, project status is known to all and to ensure that the projects are completed on time.
It will protect consumer interest, ensure efficiency in transactions, improve accountability of developers, boost transparency and attract more investments, according to the government.
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It makes it mandatory for all residential and commercial projects to register with the Regulator and will apply to new and ongoing projects. Appellate Tribunals will now be required to adjudicate cases in 60 days as against the earlier provision of 90 days and Regulatory Authorities will have to dispose of complaints in 60 days. In the earlier bill, no time frame was indicated. The Bill provides for imprisonment of up to three years in case of promoters and up to one year in case of real estate agents and buyers for any violation of orders of Appellate Tribunals or monetary penalties or both.
The mandatory registration for projects has been brought down to 500 sq m area, or those comprising eight flats. It also provides for a clear definition of carpet area and a system that would require the consent of two-thirds of the buyers in case there are changes in project plans.
Minister of Housing and Urban Poverty Alleviation Venkaiah Naidu said after passage of this Bill, existing/ongoing projects would not come to a standstill. It does not provide that the existing projects should stop all operations until complied with the provisions of the Bill.
A window of 3 months from the date of commencement of the said clause/section has been given to the promoters for registration. The developers need to to specify the project details of such apartments so that prospective buyers will make informed choices, project status is known to all and to ensure that the projects are completed on time.
Naidu also sought cooperation from the states for faster clearances to projects to make this Bill, which will override all state legislations, a success. "We are trying to make the beautiful advertisements given by developers in front page of newspapers dutiful. Our ultimate intension is to ensure consumer satisfaction. Once the Bill is notified, you will get more investments in the real estate sector, early clearances and property prices will come down," he said.
Government is also trying to bring in a National Urban Rental Housing Policy, he said, adding that the policy would take into account the requirements of tenancy hassles in modern days. "There will be a boom in the real estate sector because of the Bill. Private people, foreign investors, will come and invest. People will buy more properties," the minister said. "Real Estate Bill is a regulation and not a strangulation". The Bill was first introduced in the Rajya Sabha in 2013.