Recently the much awaited Real Estate Bill got a go-ahead from the Union Cabinet. As per the norms, the bill asks for mandatory project registration as well as registration of real estate agents with the regulatory authority. While registering, it is necessary to mention all the relevant information related to their projects, which includes status of approvals, schedule of project development, agreements, real estate agent details as well as the names of the architects and contractors involved in the project. Builders are also required to deposit half (50%) of the amount, received from the buyers in a separate account, within 15 days of receiving it. Also, it provides a window to the buyers to reach the consumer courts for any complaints or grievances.
The Real Estate Development and Regulation Bill will address the requirement of a regulatory body, in order to encourage transparent, hassle free and ethical business practice in the unorganised real estate sector while reducing delays and frauds. The measure taken in the bill will also help in increasing the foreign and domestic investments and will help to achieve Indian Government’s objective of ‘Housing for All by 2022’ according to a government release. It comprises of all the provisions to provide protection to the buyers and it is also applicable to the commercial real estate sector as well.
Moreover, under the proposed provisions, states are supposed to make the rules in a year, online registration of the properties should be introduced within a year of establishing the authorities. The regulator will have to decide cases in 60 days of time. Non-registration of property includes payment of 10% of the project cost and payment of additional 10% of the cost of project or three years of imprisonment or both. For incorrect revelation of the project details, the payment of 5% of project cost will be required. The bill provides power to the authorities to cancel any property registration in India, if there is a violation while project registration. It does not allow the developer to make any changes in the structure and plans of the design without taking approval from the 2/3rd of the consumers. Also action against real estate agents will be taken for non-compliance of the guidelines given by the regulatory authority.
Therefore, with the announcement of this major development, the real estate sector in India can certainly cheer up and expect to work in a more organised way by gaining more trust and faith from the buyers.