As per CREDAI, real estate bill will not affect real estate developer if handled it in a right way.

Q: It is true that the proposed Land Acquisition Bill would not impact the real estate sector in the country if handled in the right perspective and right manner.

Ravi Waghmare, Mumbai

20th July 2015

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Replies (10)

Hey friends......
It is come to hear 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.

Vinay Dixit, Mumbai

7th August 2015

Comment

It is true Hanif. 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.

Arpit, Delhi-NCR

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.

Vinay Dixit, Mumbai

7th August 2015

Hi everybody,
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.

Sudhakar , Chennai

3rd August 2015

Comment

Hey Sudhakar,
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.

Victor B, Bangalore

3rd August 2015

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.

Sudhakar , Chennai

3rd August 2015

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.

Sandeep Mhatre, Mumbai

31st July 2015

Comment

Hey guys,
If i am not wrong, Congress want to divert the mind of the UPA because their view in the form of dissent note by Congress has surprised many, as even the original bill that UPA 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.

Victor B, Bangalore

31st July 2015

Comment

Right Victor,
Even i am experiencing 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.

Dayananda, Mumbai

31st July 2015

But Daya.............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.

Victor B, Bangalore

31st July 2015

Right Chintak....
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.

Nandakishore, Ahmedabad

30th July 2015

Comment

Good evening everybody,
The select committee of Rajya Sabha is expected to table its report on the Real Estate (Regulation and Development) Bill, 2013 today. Cheers for the buyers....

Chintakpujara, Mumbai

30th July 2015

Comment

Hmm.....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?

Dayananda, Mumbai

30th July 2015

I think it is right. 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%.

Chintakpujara, Mumbai

30th 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.

Vinay Dixit, Mumbai

23rd July 2015

Comment

Right Vinay........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

It's true.......... 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.

Vinay Dixit, Mumbai

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

Arpit, Delhi-NCR

23rd July 2015

Right Dharmesh,
We need an efficient real estate regulator. In my experience I had a difficult time dealing with the builder. Please be aware that builders charge 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.

Sajal Das, Kolkata

20th July 2015

Comment

As per the new real estate bill 2015, if wrong declaration of information or for not obeying with the declaration and requirements found from the builders side then payment of 5% of project cost will be imposed. The Bill provides regulatory authorities the power to cancel project registration in case of constant violations and decide on further course of action regarding completion of such projects.

Praneeth Kumar, Hyderabad

20th July 2015

Yes, because real estate developers get land directly from farmers or other land owners at the price fixed by them and they were not losing any money on it. Sometimes, farmers in urban areas get double the original prices, while in rural areas, they get 4 times more.

Puneet Laskar,

20th July 2015

Comment

@Puneet,
In spite of that, the government has to handle the matter carefully, though it will take another 3 to 4 years to acquire the land under the bill due to upcoming problems in getting it

Dayananda, Mumbai

20th July 2015

Yes, the number of fights have seen between home buyers and realty developers due to delay in project completion is likely to come down as 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.

Puneet Laskar,

20th July 2015

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..

Dharmesh Shukla, Bangalore

20th July 2015

You are right Ravi........
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 if it is handled in a right manner.

Dayananda, Mumbai

20th July 2015

Comment

It's true Daya,
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.

Nandakishore, Ahmedabad

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.

Dayananda, Mumbai

23rd July 2015

@Daya,
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.

Nandakishore, Ahmedabad

23rd July 2015