The Union Cabinet after rounds of meetings with all stakeholders and incorporating recommendations of the parliamentary panels has approved the Real Estate (Regulation & Development) Bill, 2015. The Bill which is applicable both for commercial and residential real estate projects will now be taken up for consideration and passing by the Parliament.
The government approved 20 changes in the Real Estate (Regulation and Development) Bill including a proposal for insurance of land title to protect buyers and developers from the risk of land fraud, since there is little protection for consumers in the present framework. The government has said that the Bill will provide uniform regulatory environment to ensure speedy adjudication of disputes and orderly growth of the real estate sector.
The Bill has proposed a jail term up to three years or penalty or both in case of builders, one year for real estate agents and buyers for violating the orders of appellate tribunals. The legislation also puts the condition of keeping 70% of the sale proceeds for a particular project in a separate account to meet the construction cost of that project, including the land cost. This has been done to minimize diversion of funds and ensure timely completion of projects.
In order to make states comply with the norms, the bill says states will have to make the rules within six months of notification of the proposed Act. Each state will establish the real estate regulator and the appellate tribunal as per the rules. The tribunal will be the final arbiter in case of disputes between a buyer and builders or promoters. Either party can approach the tribunal if the dispute is not settled by the real estate regulator.
The other features of the Bill includes 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 and registration of real estate projects and real estate agents with the Authority.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: