Union Cabinet clears Real Estate Regulation Bill

Union Cabinet clears Real Estate Regulation Bill

Wednesday, April 8, 2015

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, on Tuesday approved a bill which seeks to protect consumers or buyers by setting up regulatory bodies at the Centre and states to ensure transparent business practices in the country and to bring in a regulator for the real estate sector.

The Real Estate Regulation Bill was first introduced by the UPA (United Progressive Alliance) government in the Rajya Sabha in August 2013 and was then referred to a Parliamentary Standing Committee, which had submitted its report in February 2014. The Real Estate (Regulation & Development) Bill seeks to protect the interests of consumers and establish regulatory bodies at the Centre and States for moralistic and promote fair business practices in the real estate sector.

The amended bill has included provisions to protect consumers or buyers, including an additional window to approach consumer courts for their grievances. It has deleted a clause that provided power to the appellate court of justice to punish the director, manager, secretary or any other officer of a real estate company for contempt of not complying with the orders or direction of the regulator. Residential, commercial and industrial projects to come under regulator’s jurisdiction.

The bill provides for mandatory disclosure of all projects and real estate agents who intend to sell any plot, apartment or building with the Real Estate Regulatory Authority. Information of projects related to details of promoters, layout plan, land status, schedule of execution and status of various approvals should be disclosed. The bill also seeks to enforce the contract between the developer and buyer and a fast track mechanism to settle any controversies.

The government said the Bill is expected ensure greater liability towards consumers, and to significantly reduce fraudulence and delays. It said the proposed legislation is expected to promote regulated and orderly growth of the real estate sector through skillfulness, professionalism and regularity.

Source - TOI