The much anticipated real estate regulation bill is proposed to be tabled in the winter session of the parliament for approval. Before that, it has been sent to law ministry for vetting and then to the cabinet for the final nod before sending it to the parliament to become a law.
This bill has come as a welcome relief for the buyer but the real estate industry is in doldrums. The real estate industry is all furious as this bill imposes harsh punishment for any irregularities.
The bill proposes to set up regulatory machinery named Real Estate Regulatory Authority for implementation of the provisions of the bill. The main objective of the bill is to create transparency and accountability in the real estate sector which has been lacking for such a long time.
Main provision asks the builder to register all the projects with the prescribed authority. If not, then it is going to attract penalty and imprisonment up to three years.
Another provision that makes things hard for the real estate sector is that they have to commit time frame for the completion of the project. Further they have to deposit 70% of the money taken from the buyer in a separate account and it has to be used only for that purpose.
Sellers cannot advertise or start booking of the flats without registering with the nodal agency. The developer has to share all the details like land status, approval, contract structure before the nodal agency.
These provisions are really tightening the screws on the developers and are going to provide some relief to the customers.
The issue of the unorganized agency services has also been addressed. Now all the property brokers have to obtain license to do business. The main aim of this clause is to eliminate malpractice and cheating which is carried on regular basis.
The bill has been modified 8-9 times and is doing rounds for 3 years now. It has seen about 3000 comments from developers and buyer before it was given final shape.