A much-awaited move, the Real-Estate Regulatory Bill is a prime reform measure passed in the Union Budget 2016 that has been a welcome relief to buyers and developers alike. It seeks to regulate the sector and bring in clarity and order, protecting consumer interests.
Lack of regulation in the real-estate sector has not only been hurtful for the investment environment and the interest of the home buyers, but stalling project implementations and land acquisitions have made the real estate sector look notorious and inefficient. Due to devious developers, the market has earned the dissatisfaction and distrust from several consumers.
The bill had the support of Congress with a voice vote in the Rajya Sabha. Further, Urban Development Minister, M Venkaiah Naidu said the bill aims to protect the interests of buyers by bringing more transparency in the sector. With 70 percent of buyer’s money to be deposited through cheques and in separate escrow accounts, this bill would prevent any unaccounted money being pumped into the market.
“A single window” clearance for all approvals that the bill administers will ensure that there is no discrimination on the basis of religion, caste, creed, sex or towards minority groups. Builders who violate these laws will either serve jail time up to 3 years or pay fine or both. Agents and buyers will serve a term of one year or monetary penalties or both.
Property-related disputes would now be adjudicated in 60 days which earlier took a total of 90 days. Affordable housing and ‘housing for all’ will no more be a stretch when projects would be completed within due time, increasing investors’ confidence and credibility, efficiency and overall transparency in the realty business.