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.

Rajiv,

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.

Joydeep D,

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.

Rajiv,

24th 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.

Joydeep D,

25th 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.

Dwarkesh,

23rd July 2015

Comment

Right Dwarkesh........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.

Dwarkesh,

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

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.

Rajib, Faridabad

7th July 2015

Comment

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.

Nithin, Gurgaon

7th 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.

Pooja Patil, Bhiwadi

7th July 2015

Hello Pooja,
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.

Rajib, Faridabad

7th July 2015

Hey Guys!!!!!
We are almost on the final stage of the amended real estate regulatory 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.

Nithin, Gurgaon

7th July 2015

Comment

It sounds really good Nitin,
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.

Lohit Raj, Delhi-NCR

7th July 2015

@Lo0hit,
I 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.

Nithin, Gurgaon

7th July 2015

Yes Nitin,
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.

Lohit Raj, Delhi-NCR

7th July 2015

Well indranil,
The problem in the realty sector is not a lack of regulation. It is a lack of execution. The problem with poor execution is that the regulation can not still be overlooked and instead creates problems for sanctioning projects. Realtors usually get over these difficulties by greasing officials and pass the expenses on to buyers. Unless the new body supersedes other authorities involved in sanctioning projects and is more effective, it will only make the realty sector murkier.

Hitesh, Gurgaon

12th April 2015

Comment

Right Hitesh,
On the other hand, funds disruption is not the only reason for delay in project completion and therefore the Bill needs to cover government bodies, including civic authorities too.

It is always seen that several projects in India have been delayed in recent years after some developers diverted funds raised for one project to another. Tjis is because the govt. took the action.

Indranil, Gurgaon

10th April 2015

Comment

Hi all,
It sound really great. 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.

Suhail, Delhi-NCR

10th April 2015

Comment

Right Suhail,
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.

Chandan, Faridabad

10th April 2015

Hey Sunil,
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.

Bhaumik, Ghaziabad

6th May 2015

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

Chandan, Faridabad

6th May 2015

As per 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.

Bhaumik, Ghaziabad

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.

Bhaumik, Ghaziabad

7th May 2015

Hi All,
My question is that the original bill drafted by UPA demanded that 70% of the funds collected by the developer should be deposited in escrow account to be used for that particular project only. Why has this been diluted now to 50%. And why has the clause been dropped where developers can be held responsible by the regulator for going against the contract ?

Hitesh, Gurgaon

9th April 2015

Comment

Hi,
Bangalore will be the least affected, in our view. NCR, too, will likely take a hit on account of the new regulations, but the impact should be lower than in Mumbai as project registration before launch is mandatory in Gurgaon and Noida.

Bikram, Mumbai

9th April 2015

Comment

You are right Bikram,
Mumbai will be the market that will be the most affected as norm violations have been at a maximum in the city, with delays and customer issues being at an all-time high.

Shantanu Kumar, Mumbai

9th April 2015

The bill is expected to help buyers from getting trapped in builder's cage.Each state will get a real estate regulator, which will settle disputes and impose compensation. All housing and commercial projects will have to be compulsorily registered with the regulator so that buyers can have access to genuine projects. You can read about some more points how it will help a buyer in a website:

propertyclubindia/How the Real Estate Bill will help property buyers from fraud

NKShrivastav, Gurgaon

9th April 2015

Comment

Hi,
Real Estate Regulatory Bill permitted by the Union Cabinet is likely to relieve their issues on delay in delivery and change in project layout among others. Developers are also expected to benefit as improved transparency and accountability will improve institutional funds flow into the sector.

Lohit Raj, Delhi-NCR

9th April 2015

Hi Jashan,
As per my knowledge, this step taken by Govt. will definitely make some difference in India real estate market. Although this step ,they should have taken at least 5-10 years back when India economy was growing. The Union Cabinet recently approved the creation of a real estate regulator in India, which aims at increasing transparency within the real estae regulator.

Seekha, Gurgaon

20th October 2014

Comment

@ Jashan,
The Real estate Regulation and Development Bill 2013, once enacted, would provide for a Real estate regulator in each state of the country. Experts are of the opinion that though the Bill has many benefits for the actual users, it also has its share of limitations. The Bill would make it obligatory for the developer to disclose minute details related to the project on the company website. Details of the project like the layout, the number of plans the developer is planning to sell and even the amenities will have to be uploaded on the website.

Ishika, Gurgaon

20th October 2014

Hi All,

The Bill also seeks to prevent developers from making misleading claims that do not match the actual development on the construction site. According to the Bill, developers will also have to maintain a separate bank account for a particular project in a scheduled bank. Seventy percent of the amounts realised for the project from the buyers have to be deposited within fifteen days of its realisation. This money will be utilised solely for meeting the costs of the particular projects.

Johnathan, Gurgaon

20th October 2014

Hi all,

No I think, this Bill will have a negative impact on the industry, especially the clause of keeping 70 per cent investment cost in the escrow account. As the money does not come cheap and permissions take one to two years to come, the growth in the industry will be affected.

Mahek, Gurgaon

20th October 2014

Yes mahek,
I completely agree with you. According to me If a builder is building five projects per year, now he will be able to do just two to three at the most. The smaller builders will bear the brunt of this. The supply-demand gap will be adversely impacted. Regulation is a good idea as it will bring in transparency.

Krishna, Gurgaon

20th October 2014

Hi All,

However, the idea of 70 per cent of the collection to be kept in escrow account will push several developers into manipulating the cash flow to other projects as circulation of money is essential for large scale developers. In any case, there is an escalation of five to seven per cent every year. Increase in petrol and diesel adds further to the burden. All this leaves no option but to balance it out in overall price rise.

Indranil, Gurgaon

20th October 2014