Government of India
Cabinet
09-December-2015
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Real Estate (Regulation and Development) Bill, 2015, as reported by the Select Committee of Rajya Sabha. The Bill will now be taken up for consideration and passing by the Parliament.
The Real Estate (Regulation and Development) Bill is a pioneering initiative to protect the interest of consumers, promote fair play in real estate transactions and to ensure timely execution of projects.
The Bill provides uniform regulatory environment to ensure speedy adjudication of disputes and orderly growth of the real estate sector. It will boost domestic and foreign investment in the Real Estate sector and help achieve the objective of Government of India to provide ‘Housing for All’ by enhanced private participation.
The Bill ensures mandatory disclosure by promoters to the customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority. The Bill aims at restoring confidence of consumers in the real estate sector; by institutionalizing transparency and accountability in real estate and housing transactions which will further enable the sector to access capital and financial markets. The Bill will promote orderly growth through consequent efficient project execution, professionalism and standardization.
The salient features of the Bill are as under:
1. Applicable both for commercial and residential real estate projects.
2. Establishment of ‘Real Estate Regulatory Authority’ in States/UTs to regulate real estate transactions.
3. Registration of real estate projects and real estate agents with the Authority.
4. Mandatory disclosure of all registered projects, including details of the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer etc.
5. Deposit of specified amount in a separate bank account to cover the construction cost of the project for timely completion of the project.
6. Establishment of fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal.
7. Civil courts jurisdiction prohibited from taking up matters defined in Bill, however, consumer court allowed to hear real estate matters.
8. Promoters barred from changing plans and design without consent of consumers.
9. Provision of Appropriate Government to make rules for the matters specified in the Bill, and the Regulatory Authority to make necessary regulations.
I have my doubts if Bill will pass through RS in current session .Moreover ,there is lot of under hand investment of leaders and likely to be strong opposition to delay it with some pretext or the other.Lets hope for the best.
“Promoters barred from changing plans and design without consent of consumers”
Process of obtaining consent of consumers would be as one in general for all changes in plans and designs Or intimation/ consent for changes specifically and / or periodically would be required from the consumers – Needs clarity for consumers and for Real-estate project executors.
Good move, if gets implemented, then, some corruption/mafia can come down.
Excellent Bill passed by the Parliament. It will filter all frauds done by the Realtors. The Customers will get Protection for their Hard Earned Money. Let us Study the Bill whether there are any Loopholes in the Bill. Because in RTA OFFICE they banned the brokerage system, but still the Staff are dependent on Brokers.