Real Estate Bill passed in Rajya Sabha

March 11, 2016 Hot from the Oven Valli Sarvani No comments

Real Estate Bill (Regulation and Development) was passed in Rajya Sabha yesterday. The Bill is aimed to regulate the real estate sector in the country, protect the interests of consumers and to promote transparency.

M Venkaiah Naidu, the Urban Development Minister stated that the bill improves the transparency in the real estate sector and saves the buyers’ interests. He added that there will be a single-window clearance for all approvals for the real estate projects and no discrimination is shown based on caste, creed, religion, sex and gender.

Stating the Bill as “only a regulation and not strangulation”, the Minster said that it will generate more opportunities and facilitate in attaining the target of ‘Houses to all citizens’. He hoped that the bill would assure the projects to be finished on time and reinvigorate the confidence of investors in this sector. He concluded that the Bill is not against anyone.

The Bill helps stop the flow of unaccounted money into the real estate sector since 70 per cent of money needs to be deposited in bank accounts by cheques now. Buyers of the real estate projects should deposit the cost of construction and land in separate escrow accounts.

And people who violate the orders of appellate tribunals will be punished. That is, three years of imprisonment if the violation is done by promoters, and up to one year of imprisonment for both real estate agents and buyers. Often the violations attract monetary penalties and sometimes both the imprisonment and monetary penalties will be imposed. The Bill also helps in solving the cases in 60 days by Appellate Tribunals as opposed to the 90 days earlier. Similarly, Regulatory Authorities need to settle the complaints in 60 days as opposed to no time limit in the earlier Bill. The major opponent, Congress Party supported the Bill in the House with a voice vote.

Image Credit: Photo by Precondo CA on Unsplash (Free for commercial use)