The Union Cabinet chaired by the Prime Minister Narendra Modi on 9 December 2015 approved the Real Estate (Regulation and Development) Bill, 2015.
The bill is based on the recommendations of the select committee of Rajya Sabha that had examined the bill pending in the upper house of the parliament.
The Bill will now be taken up for consideration and passing by the Parliament. The bill aims to protect the interest of consumers, promote fair play in real estate transactions, ensure timely execution of projects and fix accountability on builders in developing projects.
Provisions of Real Estate (Regulation and Development) Bill, 2015
• It 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 Union Government to provide Housing for All by enhanced private participation.
• It 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.
• It aims at restoring confidence of consumers in the real estate sector; by institutionalizing transparency and accountability in real estate and housing transactions which will further enable the sector to access capital and financial markets.
• It will promote orderly growth through consequent efficient project execution, professionalism and standardization.
The salient features of the Bill are
• Applicable both for commercial and residential real estate projects.
• Establishment of ‘Real Estate Regulatory Authority’ in States/UTs to regulate real estate transactions.
• Registration of real estate projects and real estate agents with the Authority.
• 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 etc.
• Deposit of specified amount in a separate bank account to cover the construction cost of the project for timely completion of the project.
• Establishment of fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal.
• Civil courts jurisdiction prohibited from taking up matters defined in Bill, however, consumer court allowed to hear real estate matters.
• Promoters barred from changing plans and design without consent of consumers.
• Provision of Appropriate Government to make rules for the matters specified in the Bill, and the Regulatory Authority to make necessary regulations.
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When: 9 December 2015