DELHI: The long wait is finally over. Real estate industry in India will now have a regulatory body. The Union Cabinet approved the Real Estate Regulatory Authority Bill on 4th June 2013. The Bill would cover all developers coming up with a project of 1000 sq meters and above.
Haling the Cabinet’s decision to introduce the Bill, Naveen Raheja, President NAREDCO says, “It is a welcome step that we have been waiting for long. It would infuse transparency in the real estate sector. It will protect the interest of all stakeholders, buyers, developers and help check unscrupulous players in the sector while streamlining processes in the sector.”
The Bill includes provisions such as a mandate for developers to launch projects only after they acquire all statutory clearances from concerned authorities, a jail term of up to three years for those developers who put up misleading advertisements about their projects repeatedly etc.
Speaking about the provisions in the Bill RK Arora, Chairman and MD Supertech Ltd states, “The mandatory registration process for any new projects is in favour of customers and will enhance their confidence while buying property. Further, it would also bring in more transparency and credibility to the sector.”
Even though the industry seems to be gung ho about this step, some issues still remain. For instance, Arora expressed his concerns about having single window clearances. He says, “We expect the government to also address the concerns of developers. For example, a single window system would definitely help in getting fast clearances, which is one of the major reasons of delays in construction.”
Talking to the Economic Times global realty consultant CBRE South Asia Chairman & MD Anshuman Magazine states, “Real estate regulatory bill should have been more balanced while taking view of challenges faced by both developers as well as consumers. While consumers need protection, for real estate development to happen more efficiently, and in a transparent manner, administrative reforms are required urgently.”
Raheja concludes, “We are hopeful that all stakeholders in the development of real estate have been brought under the ambit of this bill including government agencies which give clearances to projects. The regulator should also facilitate growth and development of the sector through streamlining and standardization of clearance procedures. All consumer complaints should be addressed to the real estate regulator and other authorities and judicial mechanism as well as enforcement agencies should come into play as per the directions of the regulators.