Real Estate (Regulation and Development ) bill to tabled during budget session

[umesh.prabhakar1965@rediffmail.com]

The Real Estate(Regulation and Development) Bill is supposed to be tabled in Parliament during Budget Session as per the news of TOI dt 17.01.2013 on Page 11 Read as:

Centre goes flat out to protect buyers in new bill. Mahendra Kumar Singh TNN

New Delhi: Builders will sell residential property on the basis of carpet area instead of ambiguous terms like super built-up area and a regulator will ensure housing projects declare the status of important civic clearances these are the provisions in a new law aimed at giving home buyers a better deal.
The Real Estate (Regulation and Development) Bill,which the government plans to bring to Parliament in the Budget session,has been framed under provisions dealing with property transactions in the concurrent list of the Constitution that applies to states,making the proposed legislation more than a model law.
In a bid to try and make sure developers stick to timelines, the proposed law states that realty players will have to park 70% of funds in a particular bank account so that resources are not diverted and buyers are not left in the lurch.
A real estate regulator in every state will make it mandatory for private developers to register all projects before sale of property and only after getting all necessary clearances, addressing a major concern of buyers about incomplete or fraudulent land acquisition.
According to the bills provisions, failure to declare status of clearances will invite up to a maximum three years imprisonment or fine that can amount to 10% of project cost.
Realty players will have to disclose project details and contractual obligations to ensure transparent, fair and ethical business practices. There can be a model agreement which is expected to reduce ambiguities in real estate transactions that not many buyers are familiar with.
Private builders are not comfortable with some of the bills provisions and have voiced their objections at a meeting chaired by housing minister Ajay Maken and urban development minister Kamal Nath.Those who attended the deliberations included representatives of developers associations CREDAI,NAREDCO and industry chambers CII and Ficci.
Builders maintain that there is no need for a regulator as they are already subjected to clearances from multiple agencies. They feels the penal provisions hurt their interests, but the government might want to increase the odds in favour of consumers.
The meeting was called after the intervention of the Prime Minister’s Office, which asked the two ministries to resolve differences and quickly finalize the long pending bill. The government hopes the move for a strong legislative protection for buyers will help in gaining the appreciation of middle class voters who have drifted from the Congress.
Although realty developers have been asked to submit their views at the earliest, the government seems determined not to dilute the consumer-friendly provisions. We are not going to compromise on any aspect of the bill that hurts the interest of common home buyers, Maken said. Real estate agents will also be asked to register with the regulator.


The bill states that realty players will have to park 70% of funds in a particular bank account so that resources are not diverted and buyers are not left in the lurch