NEW DELHI: The government on Wednesday cleared a proposed legislation to create a real estate regulatory body, paving the way for its passage in the current session of Parliament. The contentious Real Estate (Regulation and Development) Bill, 2015 was cleared at a cabinet meeting chaired by Prime Minister Narendra Modi, after the Select Committee of the Rajya Sabha tabled its report in Parliament.
Among the bill provisions are mandatory disclosure of 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 etc. It also bars promoters from changing plans and design without the consent of consumers.
Deposit of a specified amount in a separate bank account for timely completion of projects and establishment of fast-track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal are the other provisions of the bill.
As per the amended provisions, liability of the builder in case of structural damage has been raised from two to five years. Equal rate interest has to be paid by promoters in case of delay in handing over the flat or default by buyers in payment.
Tribunals are mandated to dispose of complaints in 60 days as against the earlier provision of 90 days and additional benches could be set up in the states for speedy adjudication of grievances, said sources. The salient features also include establishment of a Real Estate Regulatory Authority in States/UTs to regulate real estate transactions.
“The bill is a pioneering initiative to protect the interest of consumers, promote fair play in real estate transactions and ensure timely execution of projects. It also provides uniform regulatory environment to ensure speedy adjudication of disputes and orderly growth of the real estate sector,” said a government release.
It will boost domestic and foreign investment in the real estate sector and help achieve the objective of the government to provide ‘Housing for All’ by enhanced private participation, the statement said. The Congress had earlier accused the government of diluting the provisions of the bill to serve the interests of builders.