The Cabinet chaired by Prime Minister Narendra Modi has given approval for the Real state (REGULATION AND Development) Bill 2015. Now it will be taken up for consideration and passing by the Parliament. The Cabinet approval comes with 20 key amendments, which were based on the recommendations of the Selection Committee of Rajya Sabha.
The Bill is considered to be a pioneering initiative for protecting the consumers and investors alike. It aims to promote fair play in the real estate transactions and for the timely execution of the projects. It ensures mandatory disclosure by promoters to the customers through the registration of projects with the Real Estate Regulatory Authority.
Registration will also include mandatory disclosure of all registered projects, including details of the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer are other features of the Bill.
By providing a uniform regulatory environment, the bill ensures speedy dispute settlement and robust growth of the real estate sector. This will boost domestic and foreign investment in the sector and help the government to provide housing for all by enhancing private participation. The Prime Minister and his team aim to provide Housing for all by 2022, under key schemes.
The Bill expects to restore consumer confidence by improving accountability and transparency in housing transactions also which will further enable the real estate sector to access capital and financial markets. Orderly growth will be promoted through consequent efficient project execution, professionalism, and standardization, a release says.
The new bill mandates projects on 500 sq meters of area or with eight flats to also be registered with the regulatory authority. Along with this, the builders now also have to deposit at least 70% of the sale process, including land cost in a separate bank account to meet the construction cost to complete the timely construction.