What can we expect from the real estate bill??

Q: What can we expect from the real estate bill??

Praveen Modi, Mumbai

12th February 2013

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Replies (9)

Hey all,
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.

Subhajit Rao, Kolkata

24th July 2015

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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.

Arup rajan, Mumbai

24th July 2015

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You are right Arup,
It is true that the bill can help farmers. But, at the same time it will not harm the real estate sector if it is handled in a right manner.

Pravakar Saxena, Pune

24th July 2015

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.

amrendra.k, Bangalore

24th 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.

Arup rajan, Mumbai

24th July 2015

He guys,
What i think is that the proposed 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.

Chetan Hansraj, Bangalore

24th July 2015

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Great thoughts..........Chetan,
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.

Amarendar, Faridabad

24th July 2015

It's true.......... Amrendar,
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.

Chetan Hansraj, Bangalore

24th July 2015

Hi Dev and Anirudh,
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.

Kishore Pathak, Mumbai

6th July 2015

Comment

Hi guys,
Good news for all the home buyers. 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.

Anirudh Patel, Mumbai

6th July 2015

Comment

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.

Dev Patel, Mumbai

6th July 2015

This move came 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.

Anirudh Patel, Mumbai

6th July 2015

Right Anirudh,
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.

Dev Patel, Mumbai

6th July 2015

Also, *If status of clearances are not declared by the developers, the Bill provides for levying a fine that can amount 10% of cost of project or three years of imprisonment.
*Developers should adhere to the time which they had mentioned at the time of launch of properties. The developers have to deposit 70% of funds in a particular bank account, thereby precluding resources from being diverted and thus safeguarding property buyers.
*Also, developers are supposed to sell flats according to carpet area instead of the current practice of super area, so that buyers get a better deal and transparency of how much carpet area they get in actual.

Suresh Khanna, Mumbai

13th February 2013

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Few pointers which the Real Estate (Regulation and Development) Bill has proposed, which intends to protect the interest of property buyers are:
*All the project details will be disclosed to the property buyers by the developers to ensure transparent, fair and ethical business practices. There is a chance of preparing a model agreement to reduce ambiguities in real estate transactions.
*All property developers will have to mandatorily register their projects before the they sell property to buyers. All necessary clearances have to be obtained and major concerns of the buyers have to be addressed.

Anuj Gupta, Mumbai

13th February 2013

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what I heard is that a penal interest provision in real estate in India will be implemented which might hurt realty developers sentiments but is sure going to interest of several buyers – especially the middle class. For these property buyers, purchasing a property has been a herculean task due to hike in property rates.
Witnessing the current property transactions, the bill has been formed in such a way that it deals with them in the concurrent list of the Constitution that applies to states, making the proposed legislation more than a model law.

Ashish Bhoite, Mumbai

13th February 2013

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The Real Estate (Regulation and Development) Bill is in its planning stage and Parliament is likely to discuss the same in its coming budget session.
As per real estate experts, a strong law will be put forward to stop unethical and unscrupulous practices in the real estate industry. These practices might look very fascinating from outside when the skyline of several Indian cities is changing but for property buyers, these can be pain.

Vineet Tendulkar, Mumbai

13th February 2013

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