Cabinet defers approval to real estate bill
The bill seeks to ensure consumer protection, establishing regulatory bodies at Centre and states for ethical and transparent business practices in the real estate sector
Dec 18, 2014
Source : The Times of India


NEW DELHI: The Cabinet on Wednesday deferred the Real Estate (Regulation & Development) Bill, which seeks to ensure consumer protection, establishing regulatory bodies at Centre and states for ethical and transparent business practices in the real estate sector. Sources said the housing ministry has been asked to review the bill to explore how it can be made more consumer-friendly and to have better provisions for promotion of low-cost housing.

Low-cost housing and roof to all have been identified as a focus area by the Narendra Modi government and it has promised shelter to all by 2022. TOI has learnt that there was also a suggestion during the Cabinet meeting that the provisions relating to Centre-state issues need to be made clearer in the bill.

Government has included the bill as one of the legislations for passage during the current session of Parliament. The bill was introduced in the Rajya Sabha last August and referred to the parliamentary standing committee. Though the committee had made several recommendations particularly in favour of consumers and greater check on unscrupulous developers, the housing ministry has rejected most of them.

These include checking the antecedents of project promoters before their registration is done, and ensuring that developers who have defaulted in two earlier cases be blacklisted. But the ministry rejected this arguing that such a provision will work as a deterrent for the sector. Similarly, the panel had suggested the promoters be made to enclose names of contractors, architects and structural engineers, which was also turned down. The panel had also recommended all real estate agents involved in sale of secondary market projects also need to be regulated. But this was not accepted.

Nevertheless, there are also several provisions in the revised bill to protect the consumer's interest. This included the condition that prohibits a developer to change the plan in a project unless 2/3rd of the allottees have concurred for such change. This has reference to recent cases in Noida where a developer had changed plans and built towers to increase economic viability without taking buyers into confidence.

Earlier the housing ministry's move to allow builders to divert up to 50% of buyers' investment for a specific project to other projects had come under criticism. The original bill had mandated the developer to put 70% of the buyers' investment to an escrow account to be used only for construction of that project.

TOI on November 25 had reported how the real estate lobby was trying hard to push for this dilution.

Latest Realty News

Cheap housing only at Naina: Builders
Dec 17, 2014
NAVI MUMBAI: The city builders, who have put up stalls at Credai-BANM's 15th property exhibition, say that they are expecting a turnover of approximately Rs 2,500 crore
Construction flurry around Surajpur wetland
Dec 17, 2014
GREATER NOIDA: At a time when the Greater Noida Authority is working on plans to develop the Surajpur forest area into an ecological park, people have anticipated a price boom and begun construction
Opposition okays regularisation of land encroachment by the poor
Dec 17, 2014
HYDERABAD: The state government's proposal to regularise land encroachment up to 125 square yards by the poor has been approved by all political parties
Only 97 city high-rises have occupancy certificates
Dec 17, 2014
BELAGAVI: IT City may be dotted with hundreds of high-rises, but only 97, including residential apartments, are legally deemed fit to occupy
Fighting developers turn friends for Worli SRA project that is likely to fetch Rs 8,000 crore
Dec 17, 2014
MUMBAI: A 17 acre encroached BMC plot in Worli with a development potential estimated at Rs 8,000 crore has brought two warring builders together
100 plus projects by 50 builders at two-day property show in Coimbatore
Dec 17, 2014
COIMBATORE: More than one hundred new housing projects by 50 top builders will be showcased during the two-day property show
IL&FS Investment Managers fund exits phase 1 of Wadhwa Project
Dec 17, 2014
MUMBAI: The realty fund of financial services major IL&FS Investment Managers has exited the phase 1 of developer Wadhwa Group's residential project
32 companies in illegal real estate investment schemes: Govt
Dec 17, 2014
New Delhi: At least 32 companies have been found by capital market regulator Sebi to be operating unauthorised money-pooling schemes in the garb of real-estate business
Blackstone buys 3C Group's SEZ for Rs 625 cr
Dec 17, 2014
MUMBAI, NEW DELHI: American private equity fund Blackstone has acquired an IT special economic zone of 1.5 million square feet owned by real estate developer 3C Group for Rs 625 crore
HDFC plans to raise $500-mn realty pvt equity fund
Dec 17, 2014
New Delhi: HDFC Property Fund, set up by Housing Development Finance Corp Ltd, plans to raise a $500-million fund to invest in residential real estate projects

Latest Realty News Of State

Realty Talk's