Home buyers were once a vulnerable lot, often at the mercy of dodgy and unscrupulous developers. Not anymore though; the Real Estate Regulatory Bill passed by both the houses of Parliament in March 2016 ensures that customers now have reason to cheer when buying a home. An important bill that had been pending since 2013, the Real Estate Regulatory Bill was passed by the Rajya Sabha on the 10th of March, followed by the Lok Sabha on the 15th of March.
The much awaited bill seeks to set up a system to regulate the real estate sector in India that will protect the rights and interests of home buyers. The provisions under this bill will ensure that developers complete projects in time, and compensate home buyers suitably in the absence of timely completion.
The Real Estate Regulatory Bill will now enable the setting up of an apex body that will regulate real estate activity in the country. Under the provisions of the
As every bill that is proposed to be made into a law goes through its share of debates, the Real Estate Regulatory Bill too is not without apprehensions on the part of developers. Developers have expressed concern that the registrations process would cause delays for under-construction projects. They have also expressed concern about setting aside 70% of the funds collected from buyers; this they believe will stretch their already vulnerable liquidity position.
While the bill is a welcome relief to home buyers in India, especially the large number of those affected by delays in completion of project, what remains to be see is how effectively each state in the country executes the same, and how soon will it be before it’s made into a law. The bill in its current form is awaiting approval from the President of India, following which it can become a law. The government’s responsibility towards this is to first notify key sections of the bill that will involve setting up a regulatory authority. Once this is achieved, sections related to registration of projects, real estate agents, and the functions and duties of developers will be notified.