Real Estate Regulation Bill

Q: I heard about real estate regulation bill, that the centre is hoping to bring in the twin states of Telengana and Seemandhra. Is this true guys? Will this bill be in favour of the buyers or the builders?

Govind Naidu, Hyderabad

4th August 2014

Real estate News in Hyderabad

real estate regulation bill

real estate bill

regulatory bill

problems real estate dealings

urban local bodies real estate

union cabinet

real estate regulation & development bill 2013

real estate regulator

amendment in real estate regulatory bill

real estate regulatory authority

real estate regulatory authority india

real estate regulatory bill 2015

real estate regulatory bill latest news

real estate regulatory bill highlights

delay in real estate regulatory bill

updates on real estate regulation bill

Follow Discussion

Also see discussions for

Hyderabad Real estate News Real estate News in Hyderabad

Replies (13)

Good evening friends!!!!!
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.

Vineet raj, Hyderabad

7th August 2015

Comment

Let's see.....we can only hope 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.

James, Bangalore

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.

Vineet raj, Hyderabad

7th August 2015

Hi Kashif and James,
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.

Ram Gopal, Chennai

3rd August 2015

Comment

Hey Ram,
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?

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.

Ramya Janagam, Hyderabad

3rd August 2015

True Ramya,
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.

Kashif Mohammed, Hyderabad

3rd August 2015

But 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.

James, Bangalore

31st July 2015

Comment

Hi everybody,
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. 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.

Kashif Mohammed, Hyderabad

31st July 2015

Well Kashif,
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.

Bharath Konda, Hyderabad

30th July 2015

Comment

If i am not wrong, It can be a trick of Congress, they 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.

Kashif Mohammed, Hyderabad

31st July 2015

Right Kasif,
Even i am feeling 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.

Bharath Konda, Hyderabad

31st July 2015

Hey guys,
The select committee of Rajya Sabha is expected to table its report on the The Real Estate (Regulation and Development) Bill, 2013 today. Cheers for the buyers as well as for the investors.

Kashif Mohammed, Hyderabad

30th July 2015

Comment

But 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?

Manjunath Gupta, Hyderabad

30th July 2015

I think it is a good decision. 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%.

Kashif Mohammed, Hyderabad

30th July 2015

Hi everybody,
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.

James, Bangalore

23rd July 2015

Comment

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

Karthik Deshmukh, Bangalore

23rd July 2015

Comment

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.

ujwal nikam, Pune

23rd July 2015

Very True Ujwal,
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.

Karthik Deshmukh, Bangalore

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 1st 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.

ujwal nikam, Pune

23rd July 2015

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.

Bharath Konda, Hyderabad

6th July 2015

Comment

Right Bharath,
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.

Manjunath Gupta, Hyderabad

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.

Bharath Konda, Hyderabad

6th July 2015

@Bharath,
It means if there will be any substantial 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.

Nagesh Tudur, Hyderabad

6th July 2015

Hi Folks,
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.

Nagesh Tudur, Hyderabad

6th July 2015

Comment

True Nagesh,
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.

Suraj.V, Hyderabad

6th July 2015

Is it true 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.

Nagesh Tudur, Hyderabad

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.

Suraj.V, Hyderabad

6th July 2015

Hi all,
To save the interests of the consumers and also to streamline the sector, Union Urban Development Minister felt that the fruits of development would fully reach the people if the Centre, states and the urban local bodies (ULBs) worked together. There is a need for change in the mindset of the ULBs as they need to take responsibility of collection of taxes and in ensuring transparency and accountability in spending them.

Bharath Konda, Hyderabad

22nd August 2014

Comment

Yes, its a central government initiative e, but I think they are also looking at getting support from the state governments and the urban local bodies (ULB). Urban Union Minister M Venkaiah Naidu wants the local bodies to be strengthened so he has asked for providing better funds and functions to the ULBs. He seems to think that its the ULBs basically who should be directly in charge of the new regulations under this bill. As in they should collect taxes and ensure that all the transactions are as transparent as possible.

Lata Rao, Hyderabad

6th August 2014

Comment

Hey Lata,
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.

Manjunath Gupta, Hyderabad

6th May 2015

@manjunath,
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?

Pradeep naidu, Hyderabad

6th May 2015

Right Pradeep,
As per the current 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.

Manjunath Gupta, Hyderabad

6th May 2015

Further, Parliamentary affairs minister M Venkaiah Naidu said that 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.

Pradeep naidu, Hyderabad

7th May 2015

Yeah even I read in the papers about this new real estate regulation bill that the central government is hoping to introduce soon. I think they said this was in order to protect the buyers from fraudulent property dealers. Also the government is currently holding a number of meetings with all the experts from the CREDAI, where they are discussing all the pros and cons of introducing this bill. I think it is going to be a pretty big deal.

Ramesh Gullapalli, Hyderabad

5th August 2014

Comment

Yes you have heard right about the real estate regulation bill. And as you said, it is being developed by the centre, although it is not just for the twin states. They are going to be developing this bill keeping the whole of India in mind. I think this kind of a bill is highly justified and called for, because the real estate sector could do with a lot more transparency. I’m going to keep an eye out for the winter session of the parliament, because that’s when they are hoping to introduce this bill.

Sriram Gowda, Hyderabad

4th August 2014

Comment

@Sriram,
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.

Kashif Mohammed, Hyderabad

23rd July 2015

Right Kasif,
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.

Shyam Sundar, Chennai

23rd July 2015

@Shyam,
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.

Kashif Mohammed, Hyderabad

23rd July 2015