The need for a real estate regulator is under the spotlight once again, following a recent court verdicts on land acquisition of villages in Greater Noida, Uttar Pradesh. In the absence of a regulator, the home buyers who have invested in the affected properties are at a loss on how to claim refunds or seek compensation.
The proposed Real Estate Regulation Bill, which seeks to protect the interest of home buyers, was scheduled to be tabled in the ensuing monsoon session of Parliament, beginning on August 1. But the ministry of housing and poverty alleviation is yet to get the law ministry’s opinion on the draft Bill, an official has said. The housing ministry had sent the draft Bill to the law ministry for vetting almost three months ago.
“It’s high time we had a real estate regulator,” National Association of Realtors (India) Chairman P S N Rao told Business Standard.
Although aggrieved home buyers have the option of moving consumer courts now, the proposed legislation is expected to put in place user-friendly processes and regulations, according to Rao.
Managing director and country head (India) at Royal Institution of Chartered Surveyors, Sachin Sandhir has been advocating the need for regulating the sector. He said the proposed law would bring in accountability. He argued that the accountability should not just be for developers, but urban local authorities should also be brought under the purview of the legislation.
The current version of the Bill covers just the real estate developers, and not the government or urban local authorities. A real estate consultant pointed out that if there’s demand for the Prime Minister to come under the Lok Pal Bill, why couldn’t the government and urban local authorities be covered by the Real Estate Regulation Bill. “There’s a need to relook at the Bill,” he added.
Once the law ministry gives its opinion on the draft real estate bill, a draft Cabinet note on the subject will be circulated among ministries of finance, home, urban development, consumer affairs and the Planning Commission. It will then seek a Cabinet clearance before introducing it in Parliament.
The concept of a real estate Bill has been around for almost a decade and has seen a change in both form and content several times. Initially, work on the real estate Bill was started by the urban development ministry, but subsequently the housing ministry took charge of the proposed legislation.
According to the real estate draft regulation Bill, developers will need to make public disclosures related to land title, project completion date and other relevant scheme details on the website of the proposed regulatory authority, said a housing ministry official. The disclosures must be made before launching a project, so that consumers are not taken for a ride at a later stage. Developers will also have to register themselves with the regulatory authority.
