But decision is yet to come Kaushik.....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.

Arup rajan, Mumbai

7th August 2015

Comment

Right Arup.....
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.

Kaushik Bardia,

7th August 2015

It is true Anuj,
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.

Vikash V, Ahmedabad

4th August 2015

Comment

Yes it is true...... and at the same time i am happy to hear 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.

Kaushik Bardia,

7th August 2015

Good morning everybody!!!!
I think our conversation has come to an end as 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.

Anuj Gupta, Mumbai

4th August 2015

Comment

Hi Anuj and all ......
I am following this discussion almost 4 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.

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?

Ares,

4th August 2015

Welcome Ares!!!!!
It is just an 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.

Anuj Gupta, Mumbai

4th August 2015

Hey guys,
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.

Arushisha, Mumbai

3rd August 2015

Comment

Right Arushisha,
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. 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.

Hamsika Iyer, Pune

3rd August 2015

Mee too with you Anuj,
But 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.

anand modak, Pune

31st July 2015

Comment

Hi Anand,
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.

Hamsika Iyer, Pune

3rd August 2015

I think you are right Hamsika,
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.

anand modak, Pune

3rd August 2015

Hi everybody.....
Cheers for the home buyers and investors........The select committee of Rajya Sabha would have tabled its report on the The Real Estate (Regulation and Development) Bill, 2013 yesterday.

Anuj Gupta, Mumbai

31st July 2015

Comment

Good morning Anuj,
I read several articles on it and found that 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. According to me it's a good proposal. How many of us are agree with this proposal?

Vasanth,

31st July 2015

Good Morning Vasanth,
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.

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%.

Anuj Gupta, Mumbai

31st July 2015

Good news..........
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.

amlan.t, Bangalore

23rd July 2015

Comment

"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.

Praneeth Kumar, Hyderabad

23rd July 2015

Comment

Good evening Praneeth,
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.

Kaushik Bardia,

23rd 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.

Praneeth Kumar, Hyderabad

23rd July 2015

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.

Miraniyatin, Mumbai

23rd July 2015

Comment

Hmm......
And 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.

Kaushik Bardia,

23rd July 2015

Righ Kaushik,
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.

Miraniyatin, Mumbai

23rd July 2015

Very true......
And it is only possible if the govt. 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.

Kaushik Bardia,

23rd 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.

Hamsika Iyer, Pune

7th July 2015

Comment

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.

Rajiv Bajaj, Pune

7th July 2015

Good Evening Hamsika and Rakshit,
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.

Vikash V, Ahmedabad

7th July 2015

Comment

Absolutely right Vikash,
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.

Rakshit, Mumbai

7th July 2015

Hi 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.

Rakshit, Mumbai

7th 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.

Manilal Patel, Mumbai

7th July 2015

@Manilal,
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.

Rakshit, Mumbai

7th 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.

Hamsika Iyer, Pune

7th July 2015

Hi everybody,

What is a well-balanced view on the suggested changes to the Land Acquisition Act of 2013? Are experts and opponent right that these changes are anti-farmers? Or are farmers being misguide?

Arushisha, Mumbai

27th April 2015

Comment

Hi Arushisha,
The main question goes around the 5 types of projects being exempted in the new Bill from 70% approval of communities. As the projects important to national safety, rural infrastructure including electrification, affordable housing and housing for the poor, industrial corridors, and infrastructure projects including ones under PPP where the ownership of land continues to vest with the government.

Vinay Dixit, Mumbai

27th April 2015

@Vinay,
According to me, one major factor which give preference to the land regulation bill is the improvement of 13 Acts ruled out in the December 2013 draft, including some important ones such as Coal Bearing Areas Act of 1957 and the Atomic Energy Act of 1962. Their exemption could have made the bill appropriate in a comparatively small number of cases.

Arushisha, Mumbai

27th April 2015

He all,
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.

Ketalpujara, Mumbai

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?

Vinay Dixit, Mumbai

6th May 2015

Yes, 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.

Ketalpujara, Mumbai

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.

Ketalpujara, Mumbai

7th May 2015

Hi Lalit,
A probable answer lies in the fact that if the government had controlled that the money raised for a project should used to build that project, it would have closed an easy way that the real estate companies have of raising money. This would have eventually directed to real estate prices coming down. And any failure in real estate prices would have hurt people in politics who run this country, given that their ill-gotten money is put in real estate.

Bikram, Mumbai

24th April 2015

Comment

Hi all,

Please do not buy property from manhidra and mahindra builder they are liers. there residential project bloomdale is failure they have cheated 650 flat owners. there project is delayed by several months.they bribe the banks for loan approval, land dispute case is going on against them.complete harassment by mahindra and mahindra in almost all projects in india. now i heard 650 flat owners association is filing a case against them in mh consumer forum.

Anup Kumar Das, Apartment Resident, Nagpur

1st May 2015

Hey Anup,
Don't blame on builders. I think it is our mistake. Why don't you check all the legal approvals from local body as well as from the banks? It is clearly mentioned on the agreement paper that if there is any delay builder is liable to pay the compensation with the interest. Why don't you file a case that time? After all it was your hard earned money.

Chintakpujara, Mumbai

12th May 2015

@Vinay,
The question to ask here is why should a new regulation permit money being brought up for a particular project to be diverted to other things? It goes totally against the potential buyers who are handing over their hard earned money or taking on a big home loan to the real estate company, in the hope of living in their own home.

Praveen Modi, Mumbai

23rd April 2015

Comment

Hi all,
I think you have made a lot of discussion on Real estate bill but my question to you all that why real estate Ponzi scheme will continue despite new Real Estate Bill?

Arushisha, Mumbai

22nd April 2015

Comment

Good question Arushi,
Yes, Ponzi scheme is continue in the real estate market of India. Reason is developers like launching new projects only because it is the cheapest way to raise money. Money from the bank or the casual market, means paying high interest. Therefore, they raise money for the first project and use it to settle debt or the interest on it. To build homes under the 1st project, a 2nd project is launched. Money from 2nd project is then used to build homes for the 1st project.

Vasanth,

22nd April 2015

I appreciate that Vasanth,
This Real Estate Bill attempts to stop real estate companies from running such Ponzi schemes. As explained above, now half the money raised for a particular project needs to be deposited in a Escrow account and be spent on the project against which the money has been raised.

Mansoor Bithal, Mumbai

22nd April 2015

Hmm,
This is an advancement from the way things currently are. The way things currently work are, a real estate company launches a project, collects the money and then uses that money to do what it feels like. The Bill basically requires that every state requires to setup a Real Estate Regulatory Authority (RERA), to protect consumer interests.

Vasanth,

22nd April 2015

Well Vasanth,
Between 2013, when the bill was first presented and now the real estate market has been able to decrease the 70% level to 50%. This means that the real estate companies can still use 50% of the money raised against a particular project for other things. And this will efficiently make sure that the real estate Ponzi scheme will continue.

Vinay Dixit, Mumbai

22nd April 2015

Anup Kumar Das, Apartment Resident, Nagpur

1st May 2015

Chintakpujara, Mumbai

12th May 2015

Right Vinay,
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. I believe the key beneficiaries of this will be developers which have a consistent track record of executing projects on time, such as Prestige Estates, Godrej Properties, Sobha Developers and Oberoi Realty.

Mahendra, Mumbai

14th April 2015

Comment

Hi,
In our view Bangalore will be the least affected. Delhi/NCR too will possible 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. Because most of the issues related to real estate happened in Mumbai.

Vinay Dixit, Mumbai

13th April 2015

Comment

Hello Sir,
But you can not forget there are some projects in Mumbai where there are no bank loans, there would be certain issues because in a city like Mumbai, where average selling price is between Rs 12000-15000 and there are some areas where the selling prices are Rs 70000 and Rs 80000/sq-ft. will justify the bill, to keep 50% in an escrow will be very uneven.

Vineet Tendulkar, Mumbai

11th April 2015

Comment

Hello Himangi,
For fast track dispute settlement, one or more adjudicating officers will be appointed to settle disputes and demand compensation and interest. Appeals against adjudicating officer and Regulatory Authority will lie with the Appellate Tribunals to be set up and final appeals will lie only with High Courts.

Ramesk Polekar, Mumbai

11th April 2015

Comment

Gud discussion,
I think you all are the victims of this market and was looking for few changes in regulatory. It's not too late. it can still be regulate. 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.

Shrabani Deodhar, Pune

10th April 2015

Comment

Hey Shrabani,
I think you too were looking for this bill. Am i right? After releasing of this bill people will get their houses/flats at time. 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.

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 bill will increase the investors confidence.

Franklin, Goa

10th April 2015

In Mumbai markets especially, each of the projects ties up with bankers and all the money that is received from the customers normally go to the banker's escrow account.

And from there depending on the stage of construction and requirement of the project, the banker and the company decide as to how much to be kept for them to adjust towards the interest and principle and what is to be released for the project. And usually the bankers observe through their monitoring statements on a month-on-month basis.

Mahendra, Mumbai

10th April 2015

Comment

Hi Anuj,
Is there anything mentioned for or fast track dispute settlement such as delay possession, maintenance charges, change in lay out plan etc.?

Deepti Baragur, Pune

10th April 2015

Comment

As per R K Arora, Chaiman of Supertech Ltd., Real Estate Regulation Bill is a brilliant move towards bringing discipline in real estate sector. It will safeguard the interests of buyers and investors. Additional, the development of regulatory authorities with freedom to buyers and investors to approach multiple avenues like Consumer Courts and Civil Tribunal and several other agencies like CCI etc., having power to get involved, would create a situation of multiple procedures together and different kinds of conclusions coming from different institutions.

Roshni Pawal, Mumbai

9th April 2015

Comment

Right Roshini,
This bill will help in keeping a check on the developers who are engage in the malpractices which is effecting the image of the sector among the buyers and investors as well.

According to this bill, the projects which are still under the construction process requires to get registered with the regulator within a period of 3 months, if the Completion Certificates are not yet provided.

Mansoor Bithal, Mumbai

9th April 2015

Hi everybody,
Under the planned Law, one or more Regulatory Authorities will be put in place in each State and Union Territory or one Authority for two or more States or Union Territories by the involved Governments for management of real estate transactions.

Himangi deshmukh, Delhi-NCR

9th April 2015

Comment

Hi Himangi,
But, is there any rules and amendment for buyers as well as for several local bodies who passes the apprvals? The bill does not fix responsible equally on all stakeholders. While builders face the impact for project delay; responsibility has not been fixed for delays due to regulatory approvals and customers default on payments etc. Lot's of project delay due to statutory approval and late payment. In that case who will responsible?

Mansoor Bithal, Mumbai

9th April 2015

@Dayananda,
The Bill also attempts to make property brokers liable as they have also been made punishable for non-compliance of the orders of Regulatory Authority and Appellate Tribunals to be set under the planned law.

Anuj Gupta, Mumbai

8th April 2015

Comment

Thanks for sharing the information Anuj,
When was the bill first introduced in Rajya Sabha? What is the main aim of this bill? What all good moves mentioned in this bill for the buyer as well as for the realty market?

Arup rajan, Mumbai

8th April 2015

Well Arup,
The Bill, which was 1st released in Rajya Sabha in August 2013, attempts to make sure legal responsibility and transparency that in turn will allow the realty sector to obtain capital and financial markets essential for its long term growth.

As per this bill, developers are expected to register their projects and reveal all appropriate information including plan of development works, land status, status of legal approvals, agreements, names and addresses of real estate agents, contractors and architects with the Regulatory Authorities to be set up and conform with the same.

Bikram, Mumbai

8th April 2015

Yes , the wait come to an end. The Bill and a uniform regulatory mechanism across the country are aimed at protecting property buyers' interest by bringing in much-needed transparency and accountability into the sector.

By means of the amendments, the Cabinet has extended the usefulness of the Bill to commercial Real Estate also.

Anuj Gupta, Mumbai

8th April 2015

Comment

Hi Anuj,
Will it help the Ongoing projects that have not received Completion Certificates so far? Will this bill be stop promoters to change plans and structural design?

Dayananda, Mumbai

8th April 2015

Definitely, ongoing projects that have not received Completion Certificates so far have also been brought under the purview of the Bill and these projects need to be registered with the Regulator within 3 months,

At the same time the Bill is not to allow promoters to change plans and structural designs without the consent of 2/3rd of consumers of a project.

Anuj Gupta, Mumbai

8th April 2015