Much Awaited Realty Bill Gets Cabinet Nod

Bangalore: The much awaited real estate (Regulation and Development) Bill which was pending in the parliament since 2009, recently got approval nod by the cabinet. The aim of the bill is to bring uniformity in the real estate sector, which has become a known place to practice foul businesses. The Bill is expected to bring transparency in the sector, while helping home buyers in redressal of their grievances, according to NAREDCO.

This real estate bill is having provisions like a jail term of up to three years for developers who will mislead home buyers using wrong project advertisements repeatedly. According to the bill, developers can launch their new projects only after getting all requisite clearances from authorities and it is necessary for developers to clarify the actual carpet area when selling the flat to end users. The carpet area and the super built-up area often mislead home buyers and so the bill has come up with this step, which would be applicable throughout the country. Adding to it, the bill has included provisions under which developers have to submit all relevant clearances for the project to the regulator before starting the construction which in turn will be displayed on the website for home buyers’ reference, said industry sources.

"It is a welcome step. We had been waiting for the same since long as it would bring buyers at ease along with transparency and respect to the sector," said National Real Estate Development Council (NAREDCO) President Naveen Raheja in a statement.

The bill is expected to safeguard the interest of all stakeholders and to filter dishonest players in the sector.

"This now would help to establish a regulatory authority for enforcing fair practice and accountability norms and fast track dispute resolution mechanism in real estate transactions," Raheja said.

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On this context, Anshuman Magazine, Chairman & MD, global realty consultant CBRE South Asia cited that "Real estate regulator bill should have been more balanced (while) taking view of challenges faced by developers and consumer grievances. While consumers need protection, for real estate development to happen more efficiently, and in a transparent manner, administrative reforms are required urgently."

(With PTI inputs)