Rajya Sabha has approved Real Estate (Regulation and Development) Bill

Q: The Bill will go to the Lok Sabha and then for presidential approval before becoming law.

Puneet Laskar,

15th April 2016

Real estate News in Delhi

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real estate (regulation and development) bill

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Replies (3)

Not only this, the term carpet area has been clearly defined to eliminate any scope for wrongdoing. So far, most developers measured and sold homes based on so-called super area, which is conventionally at least 30% more than the carpet area that a buyer can use.

Praveen Modi, Mumbai

15th April 2016

Comment

The real estate bill says that the developer will have to pay the same penal interest rate for delays as the buyer does. Currently, this is heavily skewed against the buyer. The real estate sector, with over 76000 companies, needs a regulator urgently.

Chandra, Noida

15th April 2016

Hi all,
Now as per the new rules, builder/developers will have to be registered with regulators that will be set up in every state alongside appellate tribunals for dispute resolution. Even ongoing projects over 17000 of them will have to register with the authority.

Suhail, Delhi-NCR

15th April 2016

Comment

Yes, at the time of registration, the developer will have to disclose all relevant information including promoter details, project plans, implementation schedule, land status, layout, approvals and agreements among others, thus empowering buyers with the information they need.

Aakash N, Bangalore

15th April 2016

At the same time, it is also necessary that builders deposit 70% of money collected from buyers in an escrow account that will be utilised only for construction and paying for land, thus putting an end to the widespread diversion of funds to other projects.

Hitesh, Gurgaon

15th April 2016

Project delay have led to many home buyers agitating against builders over the last few yrs. To bring more projects under the limit of the proposed regulators, the Bill says all projects on land more than 500 sq-mts or having 8-apartments will have to be registered with them.

Adnan Khan, Mumbai

15th April 2016

Yes, endless wait has come to an end. a much delayed clean-up of an industry that routinely delays the delivery of projects for yrs, forces buyers to accept poor quality construction, increases costs without good reason and leaves customers without any support to timely compensation when promises are broken.

Kaushik Bardia,

15th April 2016

Comment

Hi Kaushik,
It is just a process that is expected to be smooth unlike other reforms that have got stuck in the Upper House. The legislation bars developers from advertising and selling homes in projects until they have obtained all approvals from local authorities.

Adnan Khan, Mumbai

15th April 2016