Thursday, 7 January 2016
Amended Real Estate Bill
Finally all the bottle necks that were holding the real estate bill down for so many years have finally been cleared. A special committee of Rajya Sabha examined the previous bill of 2013 and submitted its report with amendments and recommendations. This new draft which was which was drafted based on the recommendations of the committee will be placed before the cabinet in its next meeting, after the cabinet approves it the bill will be introduced on the floor of the house in the winter session of the parliament. The committee comprising of 21 members of the Rajya Sabha headed by Mr. Anil Madhav Dave was formed after the opposition parties vehemently protested against the present format of the bill. As of now it seems that the amended bill has the support of all the parties which should ensure that the bill is passed in both houses of parliament smoothly.
The requirement to regulate the scattered real estate market was the need of the hour and this bill will ensure that the gap that exist between the developers who have all the know-how on how the market operates and the first time buyer who do not have complete knowledge of the markets and how it functions is reduced and they get a good deal when the purchase their house.
The draft cleared by the committee gives detailed and comprehensive procedural requirements on how this bill intends to bring transparency, and uniformity in an otherwise unorganised sector. The provisions for strong penalties for developers who default like imposition of fine of 5% of the project cost for the first time, should the developer fails to meet with guidelines laid down in the bill, should act as a deterrent for the developers. For, the first time home buyer this bill will ensure that they are not signing on any agreement when they are buying an apartment but have a Model Draft Agreement issued by Central Government to fall back upon.
With this bill coming to effect, the developers will now have to register and disclose every aspect of their project, and by establishing state level real estate regulatory authorities, the government has ensured that there is a grievance resolution body for aggrieved buyers. This bill has laid down some basic rules and parameters for the sector; where earlier there were no such regulations.
With the Rajya Sabha panel now making these recommendations it is on the Government to ensure that the bill is passed in both the houses without further delay and the home buyer interests are protected.
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