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

Sand prices hit builders hard
Dec 18, 2014
Andhra Pradesh: Construction activity has been suffering a setback in Ongole and other parts of Prakasam district owing to ‘hefty hike’ in the price of sand which is already short in supply
Encroachment dept turns heat on illegal buildings across city
Dec 18, 2014
NASHIK: The civic encroachment department has shifted its focus from evicting hawkers to demolition of illegal structures in the city
CM to interact with CREDAI members on ready reckoner rates in Nashik next week
Dec 18, 2014
NASHIK: Chief minister Devendra Fadanvis will interact with office-bearers of the Confederation of Real Estate Developers' Association of India (CREDAI) Nashik, over Ready Reckoner (RR) rate issue in the city next week
Global investors buy $2 billion office space in 2014
Dec 18, 2014
BENGALURU: Foreign investors have bought tenanted office space worth over $2 billion in India
Indian Medical Association ties up with Antriksh; doctors to get flat at 25% discount
Dec 18, 2014
NEW DELHI: Indian Medical Association (IMA) has entered into an agreement with realty firm Antriksh group for providing 275 flats to its doctor members on Noida Expressway
AP to permit land pooling to developer entities
Dec 18, 2014
Hyderabad: The Andhra Pradesh Capital Region Development Authority (AP CRDA) Bill-2014 seeks to introduce a licensing system for developers
CAG raps Housing Board for 'rampant' discrepancies
Dec 18, 2014
Belagavi: The Comptroller and Auditor General has rapped the Karnataka Housing Board for “rampant” discrepancies in selection of locations for housing projects
Developers, buyers back in luxury homes mart
Dec 18, 2014
Mumbai: Interest in luxury residential projects is back both from developers and buyers on improved sentiment and economic conditions
Real estate exhibition to showcase 500 projects
Dec 18, 2014
NASHIK: The real estate expo - Shelter 2014 - organized by the Confederation of Real Estate Developers Association of India (CREDAI) Nashik from Thursday, will showcase around 500 residential projects
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

Latest Realty News Of State

Realty Talk's