Union Cabinet approves Real Estate (Regulation and Development) Bill, 2015
The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the Real Estate (Regulation and Development) Bill, 2015.
The Bill seeks to protect the interest of consumers, promote fair play in real estate transactions and ensure timely execution of projects.
It aims at restoring confidence of the real estate sector in the consumers by institutionalizing accountability and transparency in real estate and housing transactions. It further seeks enable the real estate sector to access financial and capital markets.
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.
- The Bill would provide uniform regulatory environment for orderly growth of the real estate sector and to ensure speedy adjudication of disputes.
- It will boost foreign and domestic investments in the Real Estate sector and play important role in achieving objective of providing ‘Housing for All’ of Union Government by enhanced private participation.
- It will also promote orderly growth of Real Estate sector in the country through consequent efficient execution of project, professionalism and standardization.