The Real Estate (Regulation and Development) Bill, 2015

The Select Committee of Rajya Sabha has granted approval for Real Estate (Regulation and Development) Bill, 2015, though with 20 amendments, aiming to safeguard buyer’s interest and to induce transparency and growth in real estate industry.

Now the Parliament will exercise its prerogative regarding consideration and passing of the bill applicable on the projects in residential and commercial segments. The bill awaiting approval of the Union Cabinet of the Rajya Sabha was introduced so as to safeguard interest of home buyers and to ensure increased flow of the investment to the cash-starved industry.

As reported, the approval of the bill by the Union Cabinet finally brought in after holding rounds of meetings with stakeholders and considering recommendations from the parliament panels.

Key features of real estate bill, 2015:

• Promoting transparency in realty transactions, safeguarding buyers’ interests and on-time completion of projects.
• Commercial and residential realty will be regulated under the bill.
• Every state and union territory will have regulatory authority to monitor realty transactions.
• Builders to disclose all the details of their registered projects: promoter, project’s name, layout plan, status of purchased land, approvals, and additional details regarding architects, contractors, structural engineer, real estate agents etc.
• There will be separate bank account for builders to deposit specified money to be used to cover the construction cost to ensure timely completion of the project.
• To set up fast track mechanism headed by judging officers and Appellate Tribunal to ensure rapid adjudication of the disputes.
• No change in design and plan of existing project by promoters without the consent of buyers.
• Consumer courts can hear matters about real estate dispute, but civil courts can’t take up the same as defined in the bill.
• Projects with eight flats or on at least 500 square meters of area are mandatory to be registered with regulatory authority.
• If projects are delayed or faulted, builders will have to pay interest rate similar to the rate they charged on buyers.
• Kitchen and toilets included in carpet area.
• Garage will not be included under defined purview of the apartment.

Real estate sector will witness transparency and accountability post implementation of the real estate regulatory bill. Moreover, it will also cut short on capital cost, thus turning up as win-win situation for builders and buyers, said source.

Source: The Economic Times. Firstpost. December 10, 2015.

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