Real Estate Bill Updates 2015

Q: Hi! The Real Estate Regulation Bill, which was 1st presented by the UPA government in the Rajya Sabha in August 2013, was accepted by the Union Cabinet on 7th April 2015.

Saurav Mishra, Pune

10th April 2015

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Replies (14)

But decision is yet to come Keshav.....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.

Anirudh Patel, Mumbai

7th August 2015

Comment

Right Anirudh.....
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.

Keshavrao Jedhe, Pune

7th August 2015

It is true Ramdas,
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.

Leena, Goa

4th August 2015

Comment

Hello friends!!!!!!
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.

Keshavrao Jedhe, Pune

7th August 2015

Hey guys,
Your conversation on Real Estate Regulatory Bill 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.

Ramdas Palsule, Pune

4th August 2015

Comment

Good morning Ram Ji....
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.

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?

Pravakar Saxena, Pune

4th August 2015

It is an efforts to get the latest updates on the real estate. Because, people have to face a lot of difficulty during their home buying. This discussion will really help them a lot.

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.

Ramdas Palsule, Pune

4th August 2015

Hey guys,
As per the current 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 against the Govt.

Ramdas Palsule, Pune

3rd August 2015

Comment

@Ramdas,
Really, it was a very shocking statement given by to AIAMDK and Samajwadi Party, 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.

Deepti Baragur, Pune

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.

dhananjay.g, Bangalore

31st July 2015

Comment

Good Morning Dhananjay,
If i am not wrong, 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.

Ramdas Palsule, Pune

3rd August 2015

Even i think so.....it is also heard that most of the members are in favor 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.

dhananjay.g, Bangalore

3rd August 2015

Hi Folks.....
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.

Rohit Marathi, Pune

31st July 2015

Comment

Good morning Rohit,
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?

Lalit Verma, Mumbai

31st July 2015

Well Lalit.......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%.

Rohit Marathi, Pune

31st 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.

Leena, Goa

23rd July 2015

Comment

I totally agree with you Gauri......
"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.

Ramdas Palsule, Pune

23rd July 2015

Comment

Hi Ramdas,
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.

Lalit Verma, Mumbai

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.

Ramdas Palsule, Pune

23rd July 2015

Hey folks !!!!!!
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.

Kishore Pathak, Mumbai

23rd July 2015

Comment

Right Kishore........and it is very difficult to deal with these kind of developers in the current real estate market these days. 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.

Gauri Shinde, Pune

23rd July 2015

@Gauri............
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.

Kishore Pathak, Mumbai

23rd July 2015

Very true.........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.

Gauri Shinde, Pune

23rd July 2015

Hello friends!!!!
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.

Ketalpujara, Mumbai

7th July 2015

Comment

Right Ketal,
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.

Maxwell, Goa

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.

Ketalpujara, Mumbai

7th 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.

Leena, Goa

7th July 2015

Hi everyone,
We are very close to achieve 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.

Maxwell, Goa

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.

Leena, Goa

7th July 2015

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.

Maxwell, Goa

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.

Leena, Goa

7th July 2015

Hi Everybody,
I think we all are waiting for such bill for a long time. And now the time has come. This bill also give instruction for mandatory registration of all projects with the real estate regulatory Authority in each state. Real estate agent who intend to sell any plot, apartment or building should also register themselves with this authority.

Lalit Verma, Mumbai

11th April 2015

Comment

Hey Lalit,
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.

Chandra Kantraut, Pune

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?

Lalit Verma, Mumbai

6th May 2015

Yes, what i heard in the 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.

Chandra Kantraut, Pune

6th May 2015

Hmm,
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.

Chandra, Noida

7th May 2015

@Upendra,
Under this bill, promoters are prohibited from changing plans, structural designs and specifications of the plot, apartment or building without the permission of two-third allottees after disclosure. However, small additions or modifications are allowed due to architectural and structural factors.

Arup rajan, Mumbai

10th April 2015

Comment

After successful releasing of this bill, allottees or buyers have the right to obtain stage-wise time schedule of project, claim possession as per promoter declaration and get refund with interest and compensation in case of default by the promoter.

Upendra Limaye, Pune

10th April 2015

Do you know that the earlier proposed bill was applicable for residential real estate. It is now proposed to cover both residential and commercial real estate.

It also establishes a fast-track dispute solution procedure through adjudication and establishment of a Real Estate Appellate Tribunal.

Rohit Marathi, Pune

10th April 2015

Function and duties of the real estate regulatory authority:- The Authority to work as the nodal agency to co-ordinate initiatives regarding development of the real estate sector and provide required guidance to the appropriate Government to make sure the growth and promotion of a clear, effective and competitive real estate sector.

Chandan Thanki, Ahmedabad

14th April 2015

Yes Saurav,
The Union Cabinet on 7th April 2015, gave its approval to changes to the Real Estate (Regulation and Development) Bill, 2013 awaiting in the Rajya Sabha, and approved changes recommended in the Bill. The recommendations of the Standing Committee of Parliament on Urban Development and suggestions of various stakeholders such as consumer organizations, industry associations, universities, experts etc. have also been involved after considerable discussions.

Rohit Marathi, Pune

10th April 2015

Comment

Right Mohit,
There are many changes made in this bill which will attract the buyers attention toward the slow real estate market. The Bill provides for a standard regulatory setting, to protect consumer interests, help quick adjudication of disputes and make sure organized growth of the real estate sector. The Bill includes procedures of registration of real estate projects and registration of real estate agents with the Real Estate Regulatory Authority, functions and duties of promoters and allottees, establishment of Real Estate Regulatory Authority, establishment of fast track dispute solution process through adjudication, establishment of a Real Estate Appellate Tribunal, offenses and penalty charges etc.

Upendra Limaye, Pune

10th April 2015

Now the promoters have to compulsorily deposit 50% (or lesser percentage as notified by the authority) of the amounts realized for the real estate project from the allottees in a escrow account in a scheduled bank within a period of 15 days to cover the cost of construction to be used for that purpose. This is targeted at preventing developers from redirecting money raised from allottees.

Keshavrao Jedhe, Pune

12th April 2015

Well Rohit,
In the new bill, ongoing projects that have not received completion certificates have also been brought under the purview of the Bill and such projects will need to be registered with a proposed regulator within 3 months.

James Desouza, Goa

13th April 2015