the Real Estate Regulation & Development Bill of 2013 is taking final shape for approval.

Q: The Real Estate (Regulation & Development) Bill, 2013, drafted by the last union government has submitted for few changes and is now in final stages of being presented for approval by the present government.

Varun,

8th January 2015

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Replies (21)

But 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.

Sanchita Chanda, Ahmedabad

7th August 2015

Comment

We have nothing to do except waiting Sanchita.....
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.

Devesh Kumar, Ahmedabad

7th August 2015

It is true Bulbul,
In this way we will never get our bill passed in the parliament. Next time we have to think more when we caste our valuable vote to these people. They should never come in parliament.

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.

Sujan Mitra,

4th August 2015

Comment

Right Sujan....
In the mean while it came to know 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.

Devesh Kumar, Ahmedabad

7th August 2015

Hi Devesh and all,
I think our wait has come to an end 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.

Bulbul Verma,

4th August 2015

Comment

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.

But do you think that we will get the result soon. As i have heard that UPA is opposing the bill and there is no work going on for 10 days in the parliament. In those 10 days they have spend Rs. 200 crores.

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?

Nitesh Patil, Pune

4th August 2015

Right Nitesh,
And these expenses made by them will ultimately charges on us by way of increasing the taxes. And they say that they are worry about the common people.

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.

Bulbul Verma,

4th August 2015

Right Devesh,
Let them do their duties. UPA has got long years to prove but failed. 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.

Saurav Mishra, Pune

3rd August 2015

Comment

I agree with you Saurav,
They have given long years to prove and we have seen their work. If you are not able to do let them others to do. 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. Ohh 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.

Devesh Kumar, Ahmedabad

3rd August 2015

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.

Abhinandsavalla, Mumbai

31st July 2015

Comment

Hey Abhi,
I am not against any party, But it seems to me that 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.

Nitesh Patil, Pune

3rd August 2015

Good morning Nitesh,
Being a resident of the country it is our prime duty that we can discuss on any topic which helps the common people. And it is a good idea even the plot having 1000 sq-mtr. of area should register with the regulator....and 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.

Devesh Kumar, Ahmedabad

3rd August 2015

Cheers folks !!!!!
The select committee of Rajya Sabha would have tabled its report on the The Real Estate (Regulation and Development) Bill, 2013 yesterday. Hoping, that sluggish realty market will soon see some improvement in sales.

Sanchita Chanda, Ahmedabad

31st July 2015

Comment

I read several articles on it. 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 for both the developers and well as for the buyers. How many of us are agree with this proposal?

Nandakishore, Ahmedabad

31st July 2015

Well Nandkishore............I think it can be accepted.......it will help both buyers and developer. But they are only discussing i don't know when are they going to implement it. Discussion will never help anybody.

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%.

Sanchita Chanda, Ahmedabad

31st July 2015

I agree with Devesh,
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.

Jack , Ahmedabad

24th July 2015

Comment

According to me it will be a benefit for both buyers and the developers if the govt. has applied that the Builders/Developers should sell only ready to occupy house/apartments. Govt. should ban selling of prelunch / under construction projects..

Lalit Verma, Mumbai

24th July 2015

Comment

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.

Nitesh Patil, Pune

24th July 2015

Right Sir......
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.

Devesh Kumar, Ahmedabad

24th July 2015

Hi all,
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.

Jack , Ahmedabad

24th July 2015

Comment

Right Jack,
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.

Nitesh Patil, Pune

24th July 2015

A small change has made in the proposed land bill 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.

Jack , Ahmedabad

24th July 2015

Good evening everybody,
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.

Nandakishore, Ahmedabad

6th July 2015

Comment

Absolutely right Nandkishore,
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.

Jack , Ahmedabad

6th July 2015

@Jack,
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.

Jyothi J, Ahmedabad

6th July 2015

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.

Nandakishore, Ahmedabad

6th July 2015

Hey guys,
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.

Jack , Ahmedabad

6th July 2015

Comment

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.

Devesh Kumar, Ahmedabad

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.

Jack , Ahmedabad

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.

Devesh Kumar, Ahmedabad

6th July 2015

Let's wait and watch, a parliamentary panel has asked the union ministry of housing and urban poverty alleviation to bring the bill soon to the parliament for its passage.

Bulbul Verma,

8th January 2015

Comment

Hi Bulbul,
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.

Sanchita Chanda, Ahmedabad

6th May 2015

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?

Siddharth Rana, Pune

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.

Sanchita Chanda, Ahmedabad

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.

Sanchita Chanda, Ahmedabad

7th May 2015

Secondly, to bring the commercial segment of real estate sector within the scope of this bill. The bill was earlier restricted to regulating only the residential segment. Experts have backed this move by the ministry, as this will give some comfort to institutional investors in commercial projects. They also suggested that this move should be balanced and fair to both customers and developers.

Sujan Mitra,

8th January 2015

Comment

Well Bulbul,
They point out that the percentage from (the earlier 70% to 50% from home buyers) should not be uniform for all cities. Instead, it should be lower for tier-I cities and higher for tier-II and tier-III cities. There were also other suggestions made by experts.

Sujan Mitra,

8th January 2015

Comment

Do you know the important changes that were proposed by the union ministry of housing in The Real Estate Regulation and Development Bill?

Bulbul Verma,

8th January 2015

Comment

Yes Bulbul,
And the introduced changes have been welcomed by several industry experts. Experts says this is a positive development and a huge step towards setting up a real estate regulator in the country. There are also a few experts who raised concerns about the bill not addressing the liability of development authorities.

Sujan Mitra,

8th January 2015

Comment

But now it seems that wait comes to an end. The Real Estate (Regulation & Development) Bill, 2013, drafted by the last union government has undergone a few changes and is now in final stages of being presented for approval by the present government. The bill is expected to be soon taken up by the cabinet for approval. The expectation of the bill becoming law soon comes as a relief to home buyers.

Bulbul Verma,

8th January 2015

Comment

However, Minister for Housing and Urban Poverty Alleviation Venkaiah Naidu had last month make sure the industry that there will be no suppression, only regulation. The bill will be a people friendly and construction sector friendly.

Sujan Mitra,

8th January 2015

Comment

It also tries to apply the contract between the developer and buyer and provides for quick remedial measures in case of disputes. Real estate developers have been opposing the proposed law, saying that it does not cover all the stakeholders including the government authorities that give project approvals.

Bulbul Verma,

8th January 2015

Comment

Ye Bulbul,
It was then referred to a Parliamentary Standing Committee, which had submitted its report in February. The bill provides for mandatory registration of all projects, besides mandatory disclosure of information like details of promoters, layout plan, land status, schedule of execution, status of various approvals and carpet area.

Sujan Mitra,

8th January 2015

Comment

The bill, which was introduced in the Rajya Sabha in August last year, seeks to protect home buyers from unethical developers postponed a decision on setting up a regulator for the real estate sector. According to sources, the Cabinet discussed the Real Estate Development and Regulation Bill but postponed a decision on it.

Bulbul Verma,

8th January 2015

Comment