Regulation Bill Provides Scope for Development of Real Estate Sector
The present economic condition in the country has led to interest for an improved real estate sector nationwide. The Finance Bill of 2012 took into account the rising interest for business, private and retail real estate, and had proposed introducing certain changes in the Income Tax Act (ITA). The idea behind proposing these changes was to reduce the flow of black money in the business sector while guaranteeing dependable information gathering related to transactions of steady lands.
The proposal was dropped as these changes would put additional consistence load on the customer. The Central government however reintroduced the Real Estate Regulation and Development Bill. The Bill proposes to create a Real Estate Regulatory Authority for regulating and improving the real estate segment.
The Real Estate Regulation Authority
The regulatory authority is intended to take measures for the development and advancement of a transparent, productive, solid and intense real estate area to all consumers. It is intended to protect consumer interests by speedy adjudication of disputes while ensuring orderly growth of the real estate sector. The Regulation Bill also incorporates many additives for the consumers and business fraternity. Following are some of the important features and advantages of the Regulation Bill.
1. The Bill prompts standardizing and systematically developing the real estate industry through presentation of definition, for example: ‘carpet area’, ‘apartment’, ‘common areas’, ‘real estate project’, ‘advertisement’, ‘prospectus’ and so on.
2. The Bill intends to enroll real estate executors with clear capacities, thereby increasing cash trail and controlling cash laundering. The executors will also be assigned clear obligations.
3. The Bill will accommodate foundation of an Appellate Tribunal. This tribunal will arbitrate debates and hear requests of the Authority or requests from choices.
4. The Bill will make it mandatory to enroll with the Real Estate Regulatory Authority for any activity that will be spread over 4,000 sq.mt.
5. It will be mandatory for promoters to register all projects prior to sale. Registrations will also be done only after receiving all approvals from the necessary authorities. This will ensure consumer protection.
6. The Bill will promote transparency relating to transactions through disclosure of project details and contractual obligations. This will significantly reduce the power asymmetry prevalent in the transactions.
7. It will ensure timely completion of projects while preventing fund diversion. It will also catalyze domestic and foreign investment into the sector, contributing to improved activity and hence the increase in GDP growth.
There are several more features and advantages of the Regulation Bill. With these features, the Bill has a good scope for developing the country’s real estate sector.
