The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Real Estate (Regulation & Development) Bill, 2015, as submitted by the Select Committee of Rajya Sabha. The Bill will now be taken up for consideration and passing by the parliament.
The Real Estate (Regulation & Development) Bill is a pioneering initiative to protect the interest of consumers, promote fair play in real estate transactions and to ensure timely execution of projects.
The Bill provides uniform regulatory environment to ensure speedy adjudication of disputes and orderly growth of the real estate sector. It will boost domestic and foreign investment in the real estate sector and help achieve the objective of the Government of India ‘Housing for All’ by enhanced private participation.
The Bill ensures mandatory disclosure by promoters to the customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority (RERA). The Bill aims at restoring confidence of consumers in the real estate sector by institutionalising transparency and accountability in real estate and housing transactions which will further enable the sector to access capital and financial markets. The Bill will promote orderly growth through consequent efficient project execution, professionalism and standardisation.
Salient features of the Bill
(a) Applicable both for commercial and residential real estate projects
(b) Establishment of ‘Real Estate Regulatory Authority’ in States/UTs to regulate real estate transactions
(c) Registration of real estate projects and real estate agents with the Authority
(d) Mandatory disclosure of all registered projects, including details of the promoter, project, layout plan, land status, approvals and agreements, along with the details of real estate agents, contractors, architect, structural engineer, etc.
(e) Deposit of specified amount in a separate bank account to cover the construction cost of the project for timely completion of the project
(f) Establishment of fast-track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal
(g) Civil courts won’t be able to take up matters defined in the Bill; however, consumer courts allowed to hear real estate matters
(h) Promoters barred from changing plans and design without consent of consumers
(i) Provision of Appropriate Government to make rules for the matters specified in the Bill, and the Regulatory Authority to make necessary regulations.