Yes in many ways this bill is going to help the home buyers. The new bill says that 70% of the money collected from the property buyer by builders should be set aside in a separate bank account, and used only for construction of the project. According to CRISIL, both property buyer and builder have to pay a penalty at the same rate of interest in case of any delay on each other’s part, which is a good initiative I think...

Parag Shukla, Bangalore

21st April 2016

True!!! Even The new law says that the sales be made on carpet area rather than on super built up area where the home buyer have to pay for a part of the construction of common areas.

Again according to CRISIL, projects will be launched only after the developer secures all statutory clearances from respective authorities.

Manu Kumar, Bangalore

21st April 2016

But Krupa.....decision is yet to come.....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.

Manu Kumar, Bangalore

7th August 2015

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Right Manu......
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.

Raghav TK, Chennai

7th August 2015

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.

Kanishka Sen, Bangalore

4th August 2015

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Good evening friends!!!!!
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.

Krupa Vasavaraj, Bangalore

7th August 2015

Hi Guys,
At last 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.

Devraj Shah, Bangalore

4th August 2015

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Hi Devraj 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?

Kanishka Sen, Bangalore

4th August 2015

It is our 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.

Devraj Shah, Bangalore

4th August 2015

Hey Guys,
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.

Karthik Deshmukh, Bangalore

3rd August 2015

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@Karthik,
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.

Krupa Vasavaraj, Bangalore

3rd August 2015

Right Rameshwari,
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.

Manu Kumar, Bangalore

31st July 2015

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Good Morning Manu,
If i am not wrong, 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.

Karthik Deshmukh, Bangalore

3rd August 2015

Right Karthik,
Even i am experiencing the same.....it is also learnt that 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.

Manu Kumar, Bangalore

3rd August 2015

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.

Rameswari, Bangalore

31st July 2015

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Hello Rameshwari,
I read several articles yesterday 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?

Manu Kumar, Bangalore

31st July 2015

Hi Manu,
I think it should be acceptable.......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%.

Rameswari, Bangalore

31st July 2015

"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.

Japesh, Bangalore

23rd July 2015

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Hi Joseph...
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.

Raghav TK, Chennai

23rd July 2015

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

Japesh, Bangalore

23rd July 2015

hope will release soon.......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.

Raghav TK, Chennai

23rd July 2015

Hi everyone,
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.

Somesh Venkatesh, Bangalore

23rd July 2015

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Right Somesh........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.

Sridhar, Hyderabad

23rd July 2015

Absolutely correct.....
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.

Somesh Venkatesh, Bangalore

23rd July 2015

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 prelunch / under construction projects. It will be a benefit for both buyers and the developers.

Sridhar, Hyderabad

23rd July 2015

One of the important feature of Real Estate Regulator Bill is the establishment of state level regulatory authorities called Real Estate Regulatory Authorities (RERA). Projects ( residential) need to be registered with RERA. On registration, the promoter need to upload details of the project on RERA website.

Navin Verma, Bangalore

17th July 2015

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Hmm,
But still there is scope of improvements in the bill. Since, it is a customer-oriented bill; buying sentiments will definitely improve. Delays in delivery can be controlled a lot if our government starts a single window clearance which will save lot of time for the developers, so that project start and delivery is on time, which will help in justifying the changes.

Jay, Delhi-NCR

12th April 2015

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Well Arup,
It is important to have a regulator which should not only work in the benefit of consumer, but it should have provisions to support the developers and industry in all. The changes made in the new bill will work delights for the appropriate functioning and clean operation of realty sector.

Wasim Mohammad, Pune

11th April 2015

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At the same time, Developers also got significantly required relief for the reason that now they have to deposit just 50% of buyer's payment in escrow account which was earlier supposed to be 70% by UPA. This amount from the payments collected from the buyers must be placed in an escrow account within 15 days.

Arup rajan, Mumbai

10th April 2015

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Hi Everybody,
The new regulatory bill applicable to both residential and commercial developments that will make it compulsory for all projects and brokers to be registered with the real estate regulator who will manage transactions and settle disputes. The bill attempts to make sure liability and transparency, which will in turn make it possible for the real estate sector to access capital and financial markets essential for its long-term growth.

Shiva Reddy, Bangalore

10th April 2015

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Hmm,
During recent years slow economic growth and delays in receiving approvals delayed many real estate projects around country, leaving buyers waiting for their homes and developers holding high debt.

This regulatory bill will be a game-changer for the realty sector. It will cause to more transparency and mature industry, and investor confidence will increase. At the same time it will help Modi Govt. to achieve his election promise of providing homes for all Indian families by 2022.

Ramya Janagam, Hyderabad

10th April 2015

Thanks for the information Niketan & Jay,
This Bill will now includes commercial real estate, as well as brokers and agents have been now been included under its purview, and are effectively made punishable in case of non-conformity with the authority's and tribunal judgment. All under-construction projects have to be compulsorily registered within 3 months of starting of the regulator, and developer cannot make changes to original plans or the structural design until he gets the approval of 2/3rds of the customers.

Sudhakar , Chennai

9th April 2015

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Right Sudhakar,
Now, with this approval, the property brokers have also become responsible to be punished under the bill, if any kind of deficit is noticed when it comes to the guidelines set by this regulatory body. The key modification noticed with this sanctioning is that the promoters won't be further more permitted to implement changes in the structural designs and plan of the project, in the lack of mutual conform of a good percentage of consumers.

Niketan Verma, Bangalore

9th April 2015

Hi Sophia
At last the wait comes to an end. The Union Cabinet has approved the Real Estate Regulation and Development Bill in association with many other crucial changes trying to impose more responsibility and clarity into the real estate sector. Protecting consumer interest and offering clean performance of real estate segment for the convenience of realty developers have been the few key points that the government is keen to look into.

Jay, Delhi-NCR

9th April 2015

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Hi Jay,
As per the amended regulatory bill together with the new suggestions, the developers will be required to register the project and release each and every useful specification regarding their development, ranging from the status of the project to the accomplishment of the various approvals along with detailed particulars of the contractor, architect and real estate brokers in front of the regulatory body.

Niketan Verma, Bangalore

9th April 2015

As far as my knowledge goes, this will be of great help to the buyers. The chances of fraud will be lesser.

prataph_g,

5th April 2012

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