Union Cabinet gives nod to Real Estate Regulation Bill to curb malpractices in real estate sector
The Union Cabinet on 7 April 2015 approved amendments to the Real Estate (Regulation and Development) Bill, 2013 to protect the interests of consumers and curb the malpractices in the real estate sector.
Decision in this regard was taken by Union Cabinet meeting chaired by Prime Minister Narendra Modi.
The bill seeks to create a uniform regulatory mechanism across the country and enhance the growth of construction sector.
It also ensures to bring transparency and accountability in the real estate sector to access capital and financial markets essential for its long term growth.
Facts about Real Estate (Regulation and Development) Bill, 2013
- Regulates transactions in real estate projects between the promoters and buyers.
- Establishes state level regulatory authorities called Real Estate Regulatory Authorities (RERAs) and tribunals called Real Estate Appellate Tribunals to settle disputes.
- Promoters and real estate agents must register project details with RERAs who intend to sell any plot, apartment or building.
- All information for registered projects must be disclosed on website of the RERA. It will include details of promoters, land status, layout plan, schedule of execution and status of various approvals.
- The bill enforces the contract between the developer and buyer and fast track the mechanism to settle disputes.
- 50% of the amount collected from buyers for a project must be maintained in a separate bank account and must only be used for construction of that project.
The Bill was initially introduced in Rajya Sabha by then UPA-2 government led by former Prime Minister Manmohan Singh. It was only applicable only for residential real estate and is still pending in Rajya Sabha.
The approved amendments by current Union Government seeks to bring commercial real estate under the ambit of bill.