The move is significant because the National Democratic Alliance (NDA) is in a minority in the upper house with just 64 members of Parliament (MPs) while the Congress alone has 66 MPs out of a total strength of 245.
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Moving The Real Estate (Regulation and Development) Bill, 2015 for consideration and passage, Urban Development Minister M Venkaiah Naidu said it aims to protect the interests of buyers and bring more transparency in the sector. It will create a much-needed consumer right protection umbrella for buyers of real estate, thereby increasing consumer confidence as well as creating lasting developer brands strong on quality and timely delivery of their projects.
-Mandatory registration with real estate regulatory authorities of projects of at least 500 sq.mt area, or those comprising eight flats, which would enable registration of more projects with the regulatory authority and will protect more consumers.
The new law would boost home buyer confidence as well as investment in the realty sector, they said, but added the government should ensure the regulator does not become another layer of bureaucracy.
Developers are also seeking clarity on whether under-construction projects will be covered under the bill.
He also questioned why the government authorities have not been included in the bill. He said, the bill fully ensures more transparency, accountability and efficiency in real estate sector, freeing it from many existing flaws.
“Even though some clauses are heavily stacked against the builders, we believe that this bill has the potential to transform our industry”, said Rajeev Talwar, group executive director at Delhi-based developer, DLF.
“There are about 17,526 projects launched in 27 cities in the last five years and delay in implementation of these housing projects due to lack of transparency and accountability has been the bane of the sector”. Real estate agents also need to register with the RERAs.
Silverglade Director Anubhav Jain said: “This is a positive development for the industry and home buyer”.
The promoters are mandated to deposit 70 per cent of the money collected from buyers in a separate bank account, to be used only for construction of that project. “This is not only time-consuming but also poses insurmountable difficulties in determining the nature and scope of regulation for ongoing project”, it said in a statement. Speaking in Parliament he said, “by creating a much needed regulator for the sector at the state and central levels, this Government has initiated the crucial first step to protect consumers from the prevalent opaque and fraudulent practices that have so far characterised this sector in India”.
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“Apart from resolving key issues that are hampering the growth of the real estate sector, this bill will lead to institutional reforms in land acquisition, approval processes and taxation that are much needed to expedite development of affordable housing”, it said.
