Cabinet approves game changer real estate regulation bill

A regulator for the real estate market which has been dogged by delays, non-transparent deals and harassment of consumers

GN Bureau | April 8, 2015


#real estate   #builders   #developers   #consumers   #housing projects  

The Real Estate (Regulation and Development) Bill, 2013 is being called the game changer and seeks to protect the interest of consumers from errant developers and ensure timely execution of projects. The union cabinet has approved changes to a bill that seeks to regulate the country's property market, which has been weighed down by black money, title problems, delay in projects and harassment of consumers.

The important changes to the original legislation of 2013 are (1) from 70 percent of the buyer's investment being put into an escrow account, the amount is reduced to 50 percent, (2) to bring the commercial segment of the real estate sector within the ambit of the bill apart from the residential segment and (3) a condition that prohibits a developer from changing the plan in a project unless 2/3rd of the allottees have agreed for such a change.

The Bill provides for mandatory registration of all projects and real estate agents who intend to sell any plot, apartment or building with the Real Estate Regulatory Authority. It makes mandatory the disclosure of all information for registered projects like details of promoters, layout plan, land status, schedule of execution and status of various approvals. The Bill also seeks to enforce the contract between the developer and buyer and a fast track mechanism to settle disputes.

The government said the Bill is expected ensure greater accountability towards consumers, and to significantly reduce frauds and delays. It said the proposed legislation is expected to promote regulated and orderly growth of the real estate sector through efficiency, professionalism and standardization.

Other points of the bill that consumers are:

  • Real estate regulator set up in all states. All projects will have to be compulsorily registered with the regulator. The real estate regulator will settle disputes and award compensation.
     
  • Promoters have to disclose layout plans and clearances details to the regulator along with the names of the contractor, architect, structural engineer and others associated with the project.
     
  • Developers will have to rectify structural defects and refund money in cases of default.
     
  • Brokers for the projects have to get registered with the real estate regulator.
     
  • Buyers can claim refund with interest and compensation if promoters fail to deliver projects in time.
     
  •  Violation of rules will attract de-registration of projects and imposition of penalties.
     

 

Comments

 

Other News

Oil minister meets Odisha CM over IOCL impasse

 In order to resolve a tax-dispute between Indian Oil Corporation Limited (IOCL) and government of Odisha, a meeting was held between minister of state (I/C) for petroleum & natural gas Dharmendra Pradhan and Odisha chief minister Naveen Patnaik in New Delhi. During the meeting, Pradhan

Product differentiation is key to beat competition: SAIL chief

 Steel Authority of India Ltd. (SAIL) chairman, PK Singh, during his recent visit to SAIL’s Rourkela Steel Plant (RSP), laid emphasis on product differentiation and said the enterprise has to match the best in quality, variety and standards. “In the present circumstances, only th

BHEL secures orders from Chile and Estonia

 Bharat Heavy Electricals Limited (BHEL) has added another feather to its cap by securing export orders from Chile and Estonia. This has helped BHEL to expand and consolidate its footprint in the international market. With maiden orders for transformer bushing from Niquel Electric Ltd, Chile

The different electoral systems across the world

India uses a mix of two systems in elections. The first-past-the-post system is used in the elections to the Lok Sabha as well as the state assemblies, while proportional representation is used during Rajya Sabha and presidential polls.   Now, an all-party Parliamentary panel

Big pharma, IP wars and profit over people

Martin Shkreli, a former hedge fund manager who is infamous for overnight spiking up the price of a lifesaving drug by 5,000 percent, was convicted on three counts of fraud in an American federal court on August 4. Shkreli is now staring at an incarceration period of up to 25 years. The order cheered up

CAG spots irregularities in ‘Zero Tax Companies’

The Comptroller and Auditor General (CAG) has noticed irregularities in the way the income tax department (ITD) carried out the assessment of Zero Tax Companies.   Several companies that were having large profit from business and distributing substantial portion of the income



Video

Merger completed for AIADMK, EPS-OPS shakes hand

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter