The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the Real Estate (Regulation and Development) Bill, 2015. The Bill will now be taken up for consideration and passing by the Parliament. The Real Estate (Regulation and Development) Bill is a pioneering initiative to protect the interest of consumers, promote fair play in real estate transactions and to ensure timely execution of projects.
Objectives of the Bill
- The Bill 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 Government of India to provide ‘Housing for All’ by enhanced private participation.
- The Bill 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.
- The Bill 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.
- The Bill will promote orderly growth through consequent efficient project execution, professionalism and standardization.
Salient features of the Bill
- The provisions of the bill would be applicable both for residential and commercial real estate projects.
- Establishment of Real Estate Regulatory Authority (RERA) in all States/Union Territories (UTs) to regulate real estate transactions.
- Mandatory registrations of real estate projects and real estate agents with the RERA.
- Mandatory to disclose all registered projects along with details of the project, promoter, land status, layout plan, agreements, approvals as well as details of real estate agents, architect, contractors, structural engineer etc.
- For timely completion of the project, specified amount will be deposited in a separate bank account to cover the construction cost.
- Establishment of Appellate Tribunal for fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers.
- Empowers only consumer court to hear real estate matters and prohibits civil courts from taking up matters defined in Bill.
- Without consent of consumers, promoters are barred from changing plans and design.
- Henceforth RERA would make necessary regulations and the Governments would make rules in the matters specified in the Bill.