We must congratulate Narendra Modi for His unrelenting Fight for Passing Real Estate (Regulation and Development) Bill,2016 in Rajya Sabha. It is indeed the win for Common Indian especially Middle Class Working Indian, who for long been suffered in hands of Tyrant Real State companies and Builders, Time to rejoice for Consumers. It will be a Remarkable start in controlling and regularizing a Most Corrupt and consumer unfriendly sector, and mind you, it was nexus of Corrupt Politicians and Builders, that made such a situation.
Real Estate Bill fully ensures more transparency, accountability & efficiency in real estate sector, freeing it from many existing flaws.
Effective regulatory mechanism will lead to orderly growth of the sector & give a strong impetus to our vision of ‘Housing for All’. – Narendra Modi
“Consumer shall be the king as in telecom sector and the developer obviously the queen. And there shall be a happy marriage between the two for both to live happily ever after and the Bill seeks to forge such a happy alliance for the benefit of real estate sector.” – Minister of Housing & Urban Poverty Alleviation M. Venkaiah Naidu
Chronology of events leading to the passage of Real Estate Bill by Rajya Sabha:
–Ministry of Law & Justice suggested a Central Law for regulation of real estate sector in July, 2011;
-Union Cabinet approved the Real Estate Bill, 2013 on June 4,2013;
-Bill was introduced in Rajya Sabha on August 14, 2013;
-Bill was referred to the Department Related Standing Committee on September 23,2013;
-Report of the Standing Committee was tabled in Rajya Sabha on February 13 and in Lok Sabha on February 17,2014;
-Attorney General upheld validity of central legislation for real estate sector on February 9,2015;
-Union Cabinet approved Official Amendments based on the recommendations of the Standing Committee on April 7,2015;
-Bill of 2013 and Official Amendments referred to the Select Committee of Rajya Sabha on May 6, 2015;
-Select Committee tables its report along with the Bill of 2015 on July 30,2015;
-Real Estate Bill, 2015 was approved by the Union Cabinet on December 9, 2015;
-Bill,2015 was listed for consideration and passing in Rajya Sabha on 22nd and 23rd December, 2015 but could not be taken up; and
-The Real Estate (Regulation & Development) Bill, 2016 passed by Rajya Sabha on March 10,2016.
Improvements made in the Bill of 2016 from 2013 Real Estate Billas follows:
- The Government has gone beyond the recommendation of the Select Committee and now requiring developers to deposit 70% of the collections form buyers in a separate accounts towards the cost of construction including that of land as against a minimum of 50% suggested by the Select Committee;
- Norms for registration of projects has been brought down to plot area of 500 sq.mts or 8 apartments as against 4,000 sq.mt proposed in the draft Bill in 2013 and 1,000 sq.mts or 12 apartments suggested by the Standing Committee;
- Commercial real estate also brought under the ambit of the Bill and projects under construction are also required to be registered with the Regulatory Authority. About 17,000 projects are reported to be at various stages of development;
- Capret area has been clearly defined which forms the basis for purchase of houses, eliminating any scope for any malpractices in transactions
- Ending the earlier asymmetry which was in favour of developers, both consumers and developers will now have to pay same interest rate for any delays on their part;
- Liability of developers for structural defects have been increased from 2 to 5 years and they can’t change plans without the consent of two thirds of allottees;
- The Bill provides for arranging Insurance of Land title, currently not available in the market which benefits both the consumers and developers if land titles are later found to be defective;
- Specific and reduced time frames have been prescribed for disposal of complaints by the Appellate Tribunals and Regulatory Authorities; and
- A provision is now made for imprisonment of up to 3 years for developers and up to one year in case of real estate agents and consumers for any violation of Tribunals and Regulatory Authorities.