Hey folks......
It is noted that the 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.

Hanif Laskar, Bangalore

7th August 2015

Comment

It is true Hanif. Now, housing projects on more than 500 sq-mtr would have to register with the proposed real estate regulator as opposed to the threshold at 1000 sq-mtr 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.

Ravi Kumar, Chennai

7th August 2015

Yes, 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.

Sameer Pawadia, Chennai

7th August 2015

Hi everybody,
At last Parliamentary Committee on 31st of August 2015, recommended a slew of measures favouring 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.

Ravindra Singh,

3rd August 2015

Comment

Yes Rabindra,
It has become a burning topic for the country now. Every next day you will hear some news on it. 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.

Nandakishore, Ahmedabad

3rd August 2015

It means 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?

Ravindra Singh,

3rd August 2015

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.

Nandakishore, Ahmedabad

3rd August 2015

What i think is that by doing this Congress want to divert the mind of the NDA. Because their view in the form of dissent note 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.

Sameer Pawadia, Chennai

31st July 2015

Comment

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.

Arpit, Delhi-NCR

31st July 2015

But Arpit.............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.

Sameer Pawadia, Chennai

31st July 2015

Can you believe what 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. I just want to ask AIAMDK and Samajwadi Party that how successfully they are running their State, country know it....don't need to know what real estate want or what NDA has to prove.

Sukhpreet, Delhi-NCR

31st July 2015

The select committee of Rajya Sabha is expected to table its report on the The Real Estate (Regulation and Development) Bill, 2013 today. 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. How many of us are agree with this proposal?

Govinda,

30th July 2015

Comment

I think it is right. 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%.

Ravindra Singh,

30th July 2015

Right Ravindra,
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 ambit of the regulatory authority but it has restricted it to plots larger than 500 sq-mt or with 8 apartments or more.

Govinda,

30th July 2015

I totally agree with you Arpit......
"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.

Saurav Mishra, Pune

23rd July 2015

Comment

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.

Nandakishore, Ahmedabad

23rd July 2015

Currently, Real Estate 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.

Saurav Mishra, Pune

23rd 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.

Nandakishore, Ahmedabad

23rd July 2015

Hi 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.

Vinay Dixit, Mumbai

23rd July 2015

Comment

Right Vinay........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.

Arpit, Delhi-NCR

23rd July 2015

Righ Arpit,
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.

Vinay Dixit, Mumbai

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.

Arpit, Delhi-NCR

23rd July 2015

Hi folks,
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. Am i right Shantanu/

Balwinder Singh,

7th July 2015

Comment

Yes Balwinder, And 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.

Ashish Bhoite, Mumbai

7th July 2015

Yes, its true. 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.

Joydeep D,

7th July 2015

Comment

Right Joy,
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.

Shantanu Kumar, Mumbai

7th July 2015

It means "Achche Din Aane Wale Hai". 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.

Joydeep D,

7th July 2015

@Joy,
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.

Shantanu Kumar, Mumbai

7th July 2015

Hi guys,
We are very close to achieve 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.

Shantanu Kumar, Mumbai

7th July 2015

Comment

Hi Shantanu,

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.

Ashish Bhoite, Mumbai

7th July 2015

Right Sridhar,
Many projects in India have been delayed in current years after some developers redirected funds raised for one project to another, leaving them out of pocket to complete construction and resulting in buyers still waiting for their homes.

This real estate regulatory bill attempts to change this flow of funds, and can charge penalties, including de-registration of the project and other penalties in case of a violation.

Krishnan Nair, Kochi

12th April 2015

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I am really happy that goverment made some amendment in the regulatory bill. Now, there will be some functions and duties of promoter like disclosure of all related information of project, compliance to approved plans and project features, commitments regarding veracity of the, advertisement for sale or prospectus, resolve architectural faults, return money in cases of default.

Sridhar, Hyderabad

11th April 2015

Comment

He Sridhar,
But as per the current news, once again the introduction of the real estate regulator bill was delayed on Tuesday as the government said it was consulting all parties and would consider the demand by some Rajya Sabha MPs to send it to a select committee.

Sharan Basappa, Hyderabad

6th May 2015

Hi Sharan,
This mean that the establishment of the regulator for protecting home buyers would get delayed further. Why their is a delay in passing the bill?

Sridhar, Hyderabad

6th May 2015

Yes, i heard the news in the morning & got shocked. What i heard in the news, the Samajwadi Party MP Naresh Agarwal, government had not consulted any other political party despite the fact that it had confident the House of the same. He also demanded that the bill cannot be referred to a joint committee since it is a property of the upper House.

Sharan Basappa, Hyderabad

6th May 2015

As per Parliamentary affairs minister M Venkaiah Naidu, he would like to consult political parties before taking a final view whether to refer it to the select committee or to do something else.

Sridhar, Hyderabad

7th May 2015

It is also mentioned in the bill that 50% of the buyer's investment has to be deposited into an escrow account that that would be used only for the construction of that project.

Manjunath, Bangalore

10th April 2015

Comment

Is it true that after passing of this bill in Rajya Sabha, developer can not change the plan in a project unless two-third of the allottees have agreed for such a change.

It also attempts to implement the contract between the developer and buyer and act as a fast track mechanism to settle disputes.

Sudhakar , Chennai

10th April 2015

Hi Shrivastav & Subramanya,
I am very much sure that these actions are likely to increase domestic and foreign investment in the sector and help to attain the objective of the Government of India to provide Housing for All by 2022, by way of improved private contribution.

The Bill offers for a consistent regulatory environment to safeguard consumer interests, help quick adjudication of disputes and make sure organized growth of the real estate sector.

Manjunath, Bangalore

10th April 2015

Comment

As per the new bill registration is mandatory for all projects with the Real Estate Regulatory Authority in each state. An agent who want to sell any plots, apartments or building should also register themselves with the authority.

Sudhakar , Chennai

10th April 2015

@Sudhakar,
Not only this Sudhakar but also it is mandatory for the developers the disclosure of all information for registered projects like details of promoters, layout plans, land status, schedule of execution and status of various approvals.

subramanya, Chennai

10th April 2015

The Union Cabinet has given green signal to Real Estate Regulatory Bill. The bill is going to improve the sentiments of buyers and will help developers who have a consistent track record in regard to delivery. The bill has brought many clauses which will impact different market. It will have maximum impact on Mumbai real estate due to its maximum number of consumer complaints and project delays while NCR and Bangalore will have medium or less impact. You can read good article on this topic on:

propertyclubindia/Real Estate Regulatory Bill cleared by the Cabinet

NKShrivastav, Gurgaon

9th April 2015

Comment

Really a gud news Shrivastav Ji,
The decision by Prime Minister Narendra Modi's government to modify the bill, which was submitted by the previous government in 2013 but not passed by the upper house, aims to boost investor confidence and eliminate illegal practices.

subramanya, Chennai

10th April 2015

hey all..there is a very good example which tells that some provisions of MOFA are not at all folowed .MOFA says that the flat price must be computed on the basis of carpet area but many developers continue to sell the flats on build-up area.

Ashish Sharma, Mumbai

30th January 2013

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I will tell you the situation in Mumbai..some consumer activists feels that they are very much comfortable with the existing law ie Maharashtra Ownership Flats Act, 1963. They doubt the success of new real estate bill and believe that the this act is enough to guard them from frauds.

Vineet Tendulkar, Mumbai

30th January 2013

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Hi..this real estate bill is specially for protecting the consumers from the greedy builders and now they are opposing to remove some provisions related to penalty for their own benefit. Lets see what does Urban Development Ministry and the HUPA decides on this issue.

Pranab Malakar,

28th January 2013

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