The Real Estate Bill could turn out to be a true Game Changer
- In Dispatch
- 04:52 AM, Mar 14, 2016
- Ranabir Bhattacharyya
For once in the last two years of doctored Parliamentary 'intolerance', the opposition co-operated with the government for a legislation. The government has worked on arriving at a consensus with the opposition to pass real estate bill in the Rajya sabha. It was a much awaited legislation and this real estate (regulations and development) bill can be a turning point in the history of real estate domain in India. This bill is promising enough to bring in much need transparency, which has often been touted to be the hunting ground of land mafias, hawalas and black money transactions. This bill was so imminent and important, that Rajya Sabha acted in unison and this bill was passed by a voice vote.
The emergence of real estate sector in India has been amazing. Rapid industrialization has led to the path of growth and urbanization which has resulted into development and growth in the real estate sector also. As far as monetary investment is considered, the business bigwigs have touted India to be an excellent turf for real estate growth. Almost all metro cities in India have witnessed a huge face lift in the ongoing 'greater' industrialization, which has been inclusive as well as game changing one for the economy as well. In recent years, this profitable domain came under the scanner for protecting unlawful people, having unaccountable money with undisclosed sources.
Confusion about the upper ceiling and cash transactions enabled rampant corruption. The unholy nexus between the builders or promoters and the politicians or bureaucrats became too prominent. In this regard, it was urgently required to have a bill to safeguard the needs of the downtrodden. Ever since India's independence, housing has remained a cause of concern for everyone. Even in this era of urbanization, in spite of having 'planned housing' an agenda, malafide practices in the UPA era tarnished the ever growing real estate industry in India. Housing is an integral part of poverty alleviation and national hygiene, the swift passing of the real estate bill in the Rajya Sabha has been a true blessing to India's GDP and social audit.
Union urban development minister M Venkaiah Naidu on this real estate bill remarked, “The Bill is need of the hour. There will be no discrimination of any kind on basis of religion, region, caste, creed or sex and gender and we will include that in the rules. There has to be single-window clearance for all approvals. It brings in only a regulation and not strangulation. This Bill is not against anyone. Real Estate Bill will renew investors’ confidence and ensure timely completion of projects and create more opportunities. In this way, it will help in achieving the target of ‘Housing For All”. This real estate regulatory bill is considered to safeguard the homebuyers and bring in the much needed transparency. The following are the salient features of this bill:
Ø From now on, all real estate projects have to be registered and approved of by regulatory authorities and the builders have to disclose all information on promoter, project, and lay out, land status, status of approvals as well as agreements with real estate agents, contractors, architects and engineers.
Ø The 'no-discriminatory' clause will allow everyone eligible to buy or sell plots or houses.
Ø The formation of State level Real Estate Regulatory Authorities will ensure swift transactions in both residential and commercial projects as well as their timely completion and handing over possession to owners. Apart from that, builders will be required to deposit of minimum 70% payments from buyers in an account, covering constructional and other recurring costs.
Ø The periphery or applicability of the real estate bill includes projects which are more than 500 sq m or that have got eight apartments.
Ø Incomplete projects will be coming under scanner in this regulation and all pre-launches are prohibited without the approval of local authorities and obtaining registration from the regulator.
Ø Builders can no longer scot free by misguiding the probable customers with fake advertisements or commercials.
Ø The regulatory authority holds the power to order 'compensation' for such misleading information to public. Side by side, in all such cases, the builders have to written the payment with interest to the buyers.
Ø Three years imprisonment for builders and one year imprisonment has been recommended for real estate agents or buyers in case of violation of orders of appellate tribunals.
Ø All the developers and builders will be required to submit their work history in the last five years and those will be uploaded in the regulator's website. It will certainly allow the buyers to have a clear view on the past performance of the developers.
Ø The Appellate Tribunals will be required to adjudicate cases in 60 days, previously which was 90 days. Side by side, regulatory committee will have to dispose of complaints in 60 days.
The real estate sector needed such reforms as it remains the second largest employer in the country, second only to agriculture. Real estate sector in India at present holds 9% of the GDP with more than 76,000 companies involved in the nationwide housing development and growth. The real estate bill is not going to undermine the efforts of the developers or builders who have been an integral part to nation building, but will be a confidence booster to all homebuyers. The present Narendra Modi Government must be complimented for its efforts to cleanse the real estate domain, attracting more investment from investors all around and an attempt to make the system transparent.
Comments