The Real Estate (Regulation and Development) Bill, 2015,
which intends to protect home buyers and bring in transparency in real estate sector,
was passed by Rajya Sabha yesterday.
From now on developers have to deposit 70% of the
collections from the buyers in a separate account to meet construction costs
including that of land and the money would be used solely for construction
purpose.
Real Estate Bill fully ensures more transparency, accountability & efficiency in real estate sector, freeing it from many existing flaws.— Narendra Modi (@narendramodi) March 10, 2016
The Bill will help establish state-level real estate
regulatory authorities and appellate tribunals to regulate transactions
relating to both residential and commercial projects and ensure their timely
completion and handover. Carpet area will form the basis for purchase of a
house. Promoters will be required to register their projects with the
regulatory authorities disclosing all the necessary permission for the project.
The grey area remains in case of deemed approvals. If the
promoter does not get the registration approved even after one month period of
submission of his approved documents for the project, then he/she will be free
to market the project with the buyers with deemed approval.
Importnt bill in Parl tdy - Real estate regulatory bill #RERA ! Very gud for consumers n creats rights 4 them n mks buildrs accountble 1/2— Rajeev Chandrasekhar (@rajeev_mp) March 10, 2016
V.K. Jagadish Babu, president of CREDAI Karnataka feels that
the new bill will usher in credibility, transparency and trustworthiness in the
real estate sector.
Builders with get an unique code once his/her project gets
approved by the Real estate regulatory authority. The promoter needs to use the
unique code for all the promotional material for the project including
brochures and other advt. materials. From now on builders would be made
accountable for all the promises made in the promotional documents to lure the
buyers.
How the bill will benefit the Real Estate Sector #RERABill #homebuyers #PassRERABill #RERABillToday #RealEstateBill pic.twitter.com/lt6NWymqEw— M Venkaiah Naidu (@MVenkaiahNaidu) March 10, 2016
Currently real estate sector contribute nearly 9% of India's
GDP and nearly 17,500 ongoing projects are running across the country. Real
estate sector is the second largest employment generator in India only next to
agriculture.
