Real Estate Bill gets Parl nod, relief for homebuyers
It will now be difficult for promoters and builders to delay projects, with the Parliament on Tuesday approving a Bill that gives relief to homebuyers and proposes imprisonment of up to three years, besides monetary penalties for any violation of rules.
The Real Estate (Regulation and Development) Bill, 2013, approved by Lok Sabha on Tuesday, five days after its passage by the Rajya Sabha, is designed to protect consumers’ interests, ensure efficiency in all property-related transactions, improve accountability of developers, boost transparency and attract more investments to the sector, the government said.
It provides for setting up of Real Estate Regulatory Authorities (RERAs), which will ensure timely execution of projects. The RERAs will regulate transactions related to residential and commercial projects and ensure their timely completion and handover. The proposed law makes it mandatory for all residential and commercial projects to register with the Regulator and will apply to new and ongoing projects.
The Appellate Tribunals will now be required to adjudicate cases in 60 days against the earlier provision of 90 days and the Regulatory Authorities will have to dispose of the complaints in 60 days. In the earlier Bill, no time-frame was indicated.
The Bill provides for imprisonment of up to three years in case of promoters and up to one year in case of real estate agents and buyers for any violation of orders of Appellate Tribunals or monetary penalties or both.
Replying to debate on the Bill, Urban Development Minister M Venkaiah Naidu said the Bill envisages that “what you are committing, what you are promising, please fulfill. What you are promising through advertisements, please fulfill that. That is the purpose of this Bill”.
Naidu also sought cooperation from the states for faster clearances to projects to make this Bill, which will override all state legislations, a success.
“We are trying to make the beautiful advertisements given by developers on the front page of newspapers dutyful. Our ultimate intension is to ensure consumer satisfaction. Once the Bill is notified, you will get more investments in the real estate sector, early clearances and property prices will come down," he said.