Industry body Assocham has asked the government to review the draft of Real Estate Regulator Bill saying many of its provisions are harsh and inimical to the sector.
"Contrary to expectations, the draft bill does not allow Real Estate Regulator to act as an impartial arbitrator between industry/developer and various government agencies on one hand and the industry/ developer and consumers on the other," the chamber said.
The proposed Bill will be a model Bill which would be sent to the state governments and Union Territories for enactment of their own laws.
In support of its point, Assocham said "while the Regulator will lay down and monitor strict timelines for execution of a project, it will do nothing to address the inevitable delay and harassment that accompanies various approvals and makes their timelines impossible to adhere to".
The draft is also discriminatory as it keeps the government agencies and statutory bodies engaged in the business of development of land or housing out of the ambit of the Regulator.
The draft treats the promoter/developer in an iniquitous manner and is biased towards the 'allotee',it complained. In addition the Bill is self contradictory as the Regulator is being given the role of a licensing authority as well which is against the basic principles of a liberalised economy, Assocham President Sajjan Jindal said.
A section of the Bill has a provision which makes it mandatory for the developer to take a registration certificate from the component authority for the release of advertisements to seek buyers for their realty projects, he added.
"The Regulator may have the right to check the veracity of the claims made in an advertisement but giving it a veto power in this regard is a clear violation of the right to conduct business and the punishments are too harsh," he said.
The government should launch a debate on the draft to ensure fair play for the government, real estate players and consumers, Assocham said.
