When is Real Estate Regulation Bill expected?

Q: When will the Real Estate Regulation Bill to be passed? Will it provide any relaxation to a common man?

Anuj Gupta, Mumbai

27th September 2011

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But decision is yet to come Bikram.....and hoping for the best...
Now, housing projects on more than 500 sq-mt would have to register with the proposed real estate regulator as opposed to the threshold at 1000 sq-mt that was fixed earlier. Also, the interest rate payable by the promoter or allottee in case of any default by either would be the same now.

Vikash V, Ahmedabad

7th August 2015

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It is true Vikash.....
And if failure to do so would lead to a penalty of 10% of the project cost. For subsequent violations, they will be charged another 10% of the project cost or sentenced to a three-year jail term. This decision would really protect buyer interests and encourage investment in the real estate sector.

Bikram, Mumbai

7th August 2015

It is true Sanjana,
It is true Devraj,
At the same time a builder or developer will have to enclose details of its existing projects, details of approvals, land title and payment dues while applying for registration of any project with the authority.

The panel define again the carpet area, according to them, the net usable floor area of an apartment, excluding the area covered by the external walls and that under service shafts, exclusive balcony or verandah and open terrace areas, although it would include the area covered by the internal partition walls of the apartment.

Kishore Pathak, Mumbai

4th August 2015

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Hi all,
I am happy to hear that Housing Ministry has accepted a proposal of a Parliamentary panel's recommendation on the Real Estate Bill to make the provisions stricter and increase the 50% threshold but not lower it. The Housing and Urban Poverty Alleviation ministry has also accepted all 38 recommendations made by the 21-member Rajya Sabha select committee which submitted its report last week.

Bikram, Mumbai

7th August 2015

Hi guys....
I think our discussion has come to an end as Parliamentary Committee on 31st of August 2015, recommended a slew of measures favoring property buyers and submitted its report in the House, which consist a 3-yrs jail term or a fine for a defaulting builder under a new law which will now cover projects of 500 sq-mt or 8-flats.

Sanjana Jain, Mumbai

4th August 2015

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Hi Sanjana and all........
I am following this discussion last 3 months and found some useful information on Real Estate Regulatory Bill 2013. Believe me......this is really a good way for made discussion on current topics and let the people aware of the current events.

What you have mentioned above it clearly indicates that the committee did not agree with earlier proposal that a person holding more than 2 apartments or plots in the same project should be treated as a promoter. Am i right?

Kishore Pathak, Mumbai

4th August 2015

Hi Kishore,
It is just an efforts to get the latest updates on the real estate. Because, people have to face a lot of difficulty during their home buying.

Now, it has become a burning topic for the country. Every next day you will get some news on it. Even i heard that the panel recommended that promoters should get their accounts audited within 6 months after the close of every financial year by a practicing chartered accountant.

Sanjana Jain, Mumbai

4th August 2015

Right Siddharth,
As per the present provision, anyone buying more than 4 flats in a project is treated as a promoter. Yet, to find a solution to this trend of a few buying more flats and having monopoly in management of affairs, the committee is recommending that all such buyers will get "one voting right" like that of other buyers. But the UPA's statement was very rude in the Parliament.

Manilal Patel, Mumbai

3rd August 2015

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@Manilal,
And it was a very shocking statement given by to AIAMDK and Samajwadi Party have told, as per him Center has no right to make laws on real estate as it is a State matter. Ohhhh common........ how successfully you both parties are running your State, country knows it....you just don't need to know what real estate want or what NDA has to prove.

Rubiya,

3rd August 2015

@Bikram
But I don't think it will come into force soon. The Congress members have also demanded that the regulatory law be made applicable to all realty projects without making any exceptions. The panel has recommended inclusion of smaller sized projects under the limit of the regulatory authority but it has limited it to plots larger than 500 sq-mt or with 8 apartments or more.

Siddharth Rana, Pune

31st July 2015

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Good Morning friends......
I am not against any party, But it seems to me that congress want to divert the mind of the NDA because their view in the form of dissent note by Congress has surprised many, as even the original bill that NDA government had brought to the Parliament had the provision that all projects could register with the regulator only if these were developed on plots measuring more than 1000 sq-mtr.

Manilal Patel, Mumbai

3rd August 2015

Being a resident of the country it is our prime duty that we can discuss on any topic which helps the common people. And it is a good idea even the plot having 1000 sq-mtr. of area should register with the regulator....and most of the members are in favour of doing away with provision of treating "bulk buyer" as developers since this may put a brake on the investment flow to the real estate sector.

Siddharth Rana, Pune

3rd August 2015

Hi Folks.....
Cheers for the home buyers and investors........The select committee of Rajya Sabha would have tabled its report on the The Real Estate (Regulation and Development) Bill, 2013 yesterday.

Bikram, Mumbai

31st July 2015

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Good morning Bikram,
I read several articles on it and found that one of the major consumer protection measures proposed by the 21-member committee, headed by BJP MP Anil Madhav Dave, is the mandatory condition that developers have to deposit 50% or more of the home buyers' money in a bank which shall be released according to the progress of the construction work. According to me it's a good proposal. How many of us are agree with this proposal?

Franklin, Goa

31st July 2015

I think it can be accepted.......it will help both buyers and developer. But they are only discussing i don't know when are they going to implement it.

Different party has sifferent view. Earlier, the NDA government had reduced it to 50% or less and allowed the state governments to lower the amount further.

As per the AIADMK and Samajwadi Party states should be given the liberty to decide if they want to allow lower the percentage. Member from the Congress have given a difference of opinion proposing the said percentage be increased to 70%.

Bikram, Mumbai

31st July 2015

I think even the panel is waiting for this bill as they have not changed the penalty provisions of the Bill and retained the original proposal such as imprisonment of developers for any violation of the proposed law. It indicated that everybody want that the sale of plot, apartment or building in an efficient and transparent manner, to protect the interest of consumers in the real estate sector.

Suraj Kalled, Pune

23rd July 2015

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"All's Well That Ends Well" is a Idioms that suited this market perfectly. It is true that the bill can help farmers but at the same time it will not harm the real estate sector or developers if it is handled in a right manner.

Franklin, Goa

23rd July 2015

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It is also came to hear that to protect small property buyers, a parliamentary panel is recommended to cover housing projects on land below 1000 sq-ft in the proposed Real Estate Regulatory Bill.

Earlier it was provision in the bill that builders could register with the regulator only if the project was on the land exceeding 1000 sq-mt.

Vineet Tendulkar, Mumbai

23rd July 2015

Good to hear.....
But currently, this bill has been referred by Rajya Sabha to a select committee on May 6 for its examination with instruction to submit its report by the last day of the first week of the current monsoon session. And it is expected that the 21-member committee headed by BJP member Anil Madhav Dave is likely to submit the report this week.

Franklin, Goa

23rd July 2015

Good evening everybody,
What i think is that the proposed Land Acquisition Bill would not impact the real estate sector as well as the developer in the country if handled in the right approach and right manner. Buyers had a difficult time dealing with the builder. Please be aware that builders charge 18-24% interest if there is delay in payment from our side and if there is delay from their side, they charge only 9% interest or no interest. It fully depends the nature of the developers. So, we need an efficient real estate regulator.

Manilal Patel, Mumbai

23rd July 2015

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Right manilal........
It is very difficult to deal with these kind of developers in the current real estate market. But as per the new real estate bill 2015, if wrong declaration of information about the project is found from the builders side then payment of 5% of project cost will be imposed. The Bill provides power to the regulatory authority to cancel their project registration in case of continue violations and decide on further course of action regarding completion of such projects.

Gauri Shinde, Pune

23rd July 2015

Very True.....
The number of fights have seen between home buyers and realty developers due to delay in project completion and it can come down if the bill is making it mandatory for the builder to maintain 50% of customer advances in an escrow account within 15 days of receiving the money from buyers.

Manilal Patel, Mumbai

23rd July 2015

Cent percent right..........
And it is only possible if the govt. has applied that the Builders or Developers should sell only ready to occupy house/apartments. Govt. should ban selling of pre-launch / under construction projects. It will be a benefit for both buyers and the developers.

Gauri Shinde, Pune

23rd July 2015

Hi Rakshit,
It means "Achche Din Aa gaye". Modi Govt is really doing a great job for this country.
Currently, there are many builders who have to be controlled in and the current disciplinary action measures may not work as a sufficient defensive. So, the main objectives of the committee is to see how best they can protect the interests of helpless consumers from the high-handedness of powerful, unethical builders.

Vineet Tendulkar, Mumbai

6th July 2015

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Even tt look to me Vineet,
The existing version of the bill provides for setting up state-level housing regulatory authorities and tribunals, and includes all residential and commercial projects over a certain area under its limit.

Bikram, Mumbai

6th July 2015

Now, the developers have to submit details of their projects, such as layout plan, apartment size, completion schedule and approvals received, on the regulatory authority's website and update it on a quarterly basis.

Vineet Tendulkar, Mumbai

6th July 2015

@Vineet,
It means if there will be any important change from the original schedule, specifications or structural design in what is finally delivered to home-buyers is considered as a breach of obligation by the builder.

Rakshit, Mumbai

6th July 2015

Hi everybody,
We are very close to achieve this amended bill which has several penalties clause for the builders. As per the current news, the Parliamentary Select Committee for the Real Estate (Regulation and Development) Bill 2013 is likely to push for more strict clauses that may lead to imprisonment of builders if they do not fulfill their obligations to home-buyers.

Bikram, Mumbai

6th July 2015

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Hi Bikram,
If it is true then it will certainly help a lot to the home buyers because financial penalties alone won't work since private developers will simply factor in the cost of these penalties in their projects and pass it on to home-buyers.

Rakshit, Mumbai

6th July 2015

I also heard that the steps was taken after holding public consultations across the country, several members of the panel are of the opinion that provisions for prosecution and imprisonment should be added in most cases where builders fail to discharge their duties and functions. I appreciate the panel's decision. It will bring more clarity in the Indian real estate market.

Bikram, Mumbai

6th July 2015

Yes, but the final report of the Select Committee of the Rajya Sabha is still under preparation and will be tabled before the upcoming monsoon session. If it comes then there will a provision for imprisonment of up to 3 years or a fine extending up to 10% of the project cost or a combination of the two, but only in cases where developers repeatedly fail to register their projects with the regulatory authority or do not obey with orders for registration.

Rakshit, Mumbai

6th July 2015

There are several more features and advantages of the Regulation Bill. With these features, the Bill has a good scope for developing the country's real estate sector.

Tamana Chopra, Bangalore

4th December 2013

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What are the features and advantages of the Regulatory Bill?

Anuj Gupta, Mumbai

4th December 2013

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The features and advantages of the Regulatory Bill are:

1. The Bill prompts standardizing and systematically developing the real estate industry through presentation of definition, for example: 'carpet area', ‘apartment’, ‘common areas’, 'real estate project', ‘advertisement’, ‘prospectus’ and so on.
2. The Bill intends to enroll real estate executors with clear capacities, thereby increasing cash trail and controlling cash laundering. The executors will also be assigned clear obligations.
3. The Bill will accommodate foundation of an Appellate Tribunal. This tribunal will arbitrate debates and hear requests of the Authority or requests from choices.
4. The Bill will make it mandatory to enroll with the Real Estate Regulatory Authority for any activity that will be spread over 4,000 sq.mt.
5. It will be mandatory for promoters to register all projects prior to sale. Registrations will also be done only after receiving all approvals from the necessary authorities. This will ensure consumer protection.
6. The Bill will promote transparency relating to transactions through disclosure of project details and contractual obligations. This will significantly reduce the power asymmetry prevalent in the transactions.
7. It will ensure timely completion of projects while preventing fund diversion. It will also catalyze domestic and foreign investment into the sector, contributing to improved activity and hence the increase in GDP growth.

Milind, Bangalore

4th December 2013

The present economic condition in the country has led to interest for an improved real estate sector nationwide. The Finance Bill of 2012 took into account the rising interest for business, private and retail real estate, and had proposed introducing certain changes in the Income Tax Act (ITA). The idea behind proposing these changes was to reduce the flow of black money in the business sector while guaranteeing dependable information gathering related to transactions of steady lands.

Tamana Chopra, Bangalore

4th December 2013

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The proposal was dropped as these changes would put additional consistence load on the customer. The Central government however reintroduced the Real Estate Regulation and Development Bill. The Bill proposes to create a Real Estate Regulatory Authority for regulating and improving the real estate segment.

Navneet Gupta, Bangalore

4th December 2013

If the developers fail to provide clearance status to home buyers then the bill will impose fine up to 10 percent of the total project cost or three years of imprisonment. The bill also says that the developers have to sell the property based on carpet area and not on the basis of super area, which is currently happening. This will give a little relaxation to home buyers on property buying and will also bring transparency in the realty sector.The Regulator Bill will hopefully safeguard consumer’s interest from false business. It can be expected that the construction quality and service offered by developers to improve after the introduction of the Bill.

Milind, Bangalore

8th April 2013

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The major problem in the real estate sector is the delay in possession. Home buyers who are buying under construction flats are getting trapped into this problem.It is expected that if the proposed regulatory bill comes into effect, it may reduce the delays to some extent. As per the bill, private real estate developers have to register the projects before selling it to the property buyers.To register the bill, developers need to have all necessary clearances which will create transparency in the real estate sector. The developers also have to disclose project details and any kind of contractual obligations with the property buyers to maintain fair and reduce fraudulent business.

Yogendra, Bangalore

8th April 2013

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Till now Indian real estate has been dominated by real estate developers, promoters and developers. The sector does not have any restriction for the developers.When the economic condition was sluggish, many real estate companies have gone missing leaving the investors into trouble. Some builders set their project at lower price and sell the properties at lesser cost but in such kind of situation it is very much necessary to check the past records, without believing them completely.

Sishir,

5th April 2013

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The real estate sector contributes five to six percent of the country’s GDP but to double the growth, the sector needs more regulation. If the regulation bill is implemented, it will control all the double -dealing and false practices happening in this sector. The Bill will also cover the construction development sector that includes built-up infrastructure, townships and housing.

Jackie,

5th April 2013

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The government is likely to come up with a Real estate Bill, which is pending in the parliament since 2009. The sector is in urgent need of this bill as the industry is known for foul business and less transparency are practiced widely.

Himanshu Dixit, Bangalore

5th April 2013

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It is expected in the end of this financial year.The ministry is looking into the bill legislations and later on every state will be permitted to frame their own real estate regulatory bill. The bill will bring justice to the individuals property and will take care of the development over the land.

Sanjana Jain, Mumbai

27th September 2011

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