The union cabinet on Tuesday gave its approval to amendments to the real estate bill which seeks to promote fair play in real estate transactions and significantly reduce scope of fraud and delay.
The bill provides for setting up a Real Estate Regulatory Authority and fast-tracking resolution of disputes through adjudication.
It provides for registration of real estate projects and real estate agents with the authority and specifies the functions and duties of promoters and allottees.
"The union cabinet, chaired by Prime Minister Narendra Modi, today (Tuesday) gave its approval to amendments to the Real Estate (Regulation and Development) Bill, 2013 pending in the Rajya Sabha, and approved amendments proposed in the Bill," said a release from the Prime Minister's Office.
It said the bill was "a pioneering initiative" to protect the interest of consumers, to promote fair play in real estate transactions and to ensure timely execution of projects.
"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," it said.
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The bill seeks to establish a real estate appellate tribunal.
The release said the bill will help achieve the goal of housing for all by 2022, set by the National Democratic Alliance government.
"The measures are expected to boost domestic and foreign investment in the sector and help achieve the objective of the government to provide 'Housing for All by 2022', through enhanced private participation," it said.
"The bill aims at restoring confidence of the general public in the real estate sector through transparency and accountability in transactions. This will enable the sector to access capital and financial markets essential for its long-term growth," the release said.
It said the bill will promote orderly growth through efficient project execution, professionalism and standardisation.
Officials said the real estate and housing sector, at present, is largely unregulated and opaque, with consumers often being unable to procure complete information or enforce accountability against builders and developers.
They said real estate development and housing construction was largely the concern of state institutions till the 1980s with very few private promoters.
The officials said liberalisation of the economy led to growth of the private sector in construction and the sector now contributes significantly to the country's Gross Domestic Product.