The Union cabinet has finally approved amendments to the Real Estate (Regulation and Development) Bill, 2013, addressing the long-standing demand to bring in a regulator for the real estate sector. The bill originally moved by the previous government was restricted to residential real estate only but now with amended provisions it covers commercial projects as well. The Bill aims at restoring confidence of the general public in the real estate sector; by instituting transparency and accountability in real estate and housing transactions. This in turn will enable the sector to access capital and financial markets essential for its long term growth. The Bill will promote orderly growth through consequent efficient project execution, professionalism and standardisation,
The Bill contains provisions of registration of real estate projects and registration of agents with the Real Estate Regulatory Authority, functions and duties of promoters and allottees, establishment of Real Estate Regulatory Authority, establishment of fast track dispute resolution mechanism through adjudication, establishment of a Real Estate Appellate Tribunal, offences and penalties.
The bill is currently pending in Rajya Sabha and would be moved in Parliament in second half of the budget session. The government hopes that the bill would ensure mandatory disclosure by promoters to customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority.
The present government has made some important changes to the original legislation brought by the UPA government. The earlier Bill had mandated that a developer put 70 per cent of the buyer's investment into an escrow account that would be used only for the construction of that project, which has been brought down to 50 per cent.
