Terming the Real Estate (Regulation and Development) Bill 2013 a landmark legislation aimed at protecting the interests of home buyers, Housing and Urban Poverty Alleviation Minister, Ajay Maken has said the Bill proposed to register real estate agents, who have been unregulated, which will eventually lead to tracing of money trail and curbing money laundering.
Addressing media here yesterday, Maken said the Bill approved by the Union Cabinet is a pioneering initiative to protect the interest of consumers, to promote fair play in real estate transactions and to ensure timely execution of projects.
He said that the Bill provides for a uniform regulatory environment, to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real estate sector.
Reiterating Government's commitment to make real estate development transparent and consumer friendly, Maken said that real estate and housing construction has been largely the concern of state institutions till the 80's with very few private promoters and a nascent industry.
"With the liberalization of the economy, conscious encouragement was given to the growth of the private sector in construction, with a great deal of success, and the sector today is estimated to contribute substantially to the country's GDP. But currently the real estate and housing sector is largely unregulated and opaque, with consumers often unable to procure complete information, or enforce accountability against builders and developers in the absence of effective regulation," he added.
Maken further expressed the hope that the proposed legislation would ensure greater accountability towards consumers, and to significantly reduce frauds and delays. The Bill aims at restoring confidence of the general public in the real estate sector; by instituting transparency and accountability in real estate and housing transactions which in turn will enable the sector to access capital and financial markets essential for its long term growth.
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"The Bill is also expected to promote regulated and orderly growth through efficiency, professionalism and standardization. It seeks to ensure consumer protection, without adding another stage in the procedure for sanctions," he added.
Giving the details of the Bill, the Minister said that it contains elaborate provisions dealing with registration of real estate projects and registration of real estate agents with the Real Estate Regulatory Authority; functions and duties of promoters; functions and duties of real estate agents; rights and duties of allottees; establishment of Real Estate Regulatory Authority; establishment of Central Advisory Council; establishment of Real Estate Appellate Tribunal; offences and penalties; Finance, Accounts, Audits and Reports.
The Bill proposes to regulate transactions in the real estate sector and is in pursuance of the powers under Entries 6, 7 and 46 of the Concurrent List of the Constitution, which deals with Transfer of Property, Registration of Deeds and Documents, and Contracts.
The draft Bill, it is stated, has been prepared after detailed deliberations with the State Governments and concerned Central Government Ministries, and after having suitably incorporated the suggestions received from them.