New Delhi: The government on Wednesday reached out to the Opposition including the Congress by agreeing to incorporate in the Real Estate (Regulation and Development) Bill 2015, a provision requiring real estate developers to deposit 70 per cent of the project cost in a separate escrow account.
Congress and CPI(M) have demanded this provision specifically to be included in the proposed Bill.
Union Cabinet chaired by Prime Minister Narendra Modi approved several amendments to the Real Estate (Regulation and Development) Bill, 2015 aimed to protect the interests of buyers while at the same time promoting investments in the sector.
According to a senior Urban Development Ministry official, the government has gone beyond the recommendations of the Select Committee of Rajya Sabha which has recommended minimum 50 per cent of sale proceeds to be deposited in a separate escrow account.
The decision of cabinet today has significantly improved the prospects of the Real Estate (Regulation and Development) Bill 2015 being passed in the current session.
There are several changes in the Bill based on the recommendations of the Select Committee of Rajya Sabha that has examined the Bill pending in Rajya Sabha and the official amendments proposed earlier.
The Bill provides uniform regulatory environment to ensure speedy adjudication of disputes and orderly growth of the real estate sector. It will boost domestic and foreign investment in the real estate sector and help achieve the objective of the government to provide 'Housing for All' by enhanced private participation.
The amendments piloted by the Housing and Urban Poverty Alleviation Minister M Venkaiah Naidu include mandatory registration with Real Estate Regulatory Authorities of projects of 500 sq mt area or 8 flats instead of 1,000 sq mt or 12 flats proposed earlier.
This enables registration of more projects with the regulatory authority thereby protecting buyers.
The Real Estate (Regulation and Development) Bill is a pioneering initiative to protect the interest of consumers, promote fair play in real estate transactions and to ensure timely execution of projects.