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Parliament has passed a crucial Bill that would pave the way for establishing a regulator for the real estate sector.
The Real Estate (Regulation and Development) Bill 2016 — which among other things seek to ensure that home buyers get timely deliveries from builders – was passed by the lower house on Tuesday.
The Rajya Sabha had on March 10 passed this Bill that seeks to promote fair practices in the real estate sector and protect the interest of consumers.
Earlier, while moving the Bill for passage in the lower house, Urban Development Minister Venkaiah Naidu said that government is also working on a national rental housing policy that would protect the rights of tenants and incentives individuals to rent out properties.
This real estate bill was first introduced in 2013.The present government has brought in some amendments. As per the Bill passed by Parliament, State level authorities – Real Estate Regulatory Authorities – would be set up to regulate both residential and commercial transactions.
Real estate projects would get graded, helping customers take informed decisions. The Bill, which seeks to put in place an effective regulatory mechanism for the sector, will also enhance the credibility of construction industry by promoting transparency, accountability and efficiency in execution of projects.
It requires developers to deposit 70 per cent of funds collected from buyers in a separate accounts towards the cost of construction including that of land as against a minimum of 50 per cent suggested by the Select Committee.
Naidu, who is also Parliamentary Affairs Minister, clarified in the Lok Sabha on Tuesday that the account would not be in nature of an escrow account. The Bill requires promoters to register their projects with the Regulatory Authorities disclosing project information including details of the promoter, project including schedule of implementation, layout plan, land status, status of approvals, and agreements along with details of real estate agents, among others.
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