The much awaited Real Estate (Regulation and Development) Bill, 2015, was approved by the Union Cabinet recently. The Real Estate (Regulation and Development) Bill is a pioneering initiative to protect the interest of consumers. The bill promotes fair play in real estate transactions and to ensure timely execution of projects.
Here are the takeaways you need to know about the bill:
- It regulates both commercial and residential real estate projects.
- It seeks to set up Real Estate Regulatory Authority in states and union territories to oversee real estate transactions.
- It makes registration of real estate projects and real estate agents with the authority mandatory.
- It makes mandatory disclosure of details of all registered projects, including those about the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer, etc.
- Developers have to deposit specified amount in a separate bank account to cover the construction cost of the project for timely completion of the project.
- It seeks to establish fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal.
- The bill bars civil courts from taking up matters defined in it.
- However, consumer courts are allowed to hear real estate matters. There are 644 consumer courts in the country. The more avenues for grievance redressal would mean lower litigation costs for the buyers.
- Promoters are barred from changing plans and design without consent of consumers.
- This will protect buyers and developers from frauds.
- The permission to approach consumer courts should come in as a major relief for the buyers.
- There are 644 consumer courts in the country. More avenues for grievance redressal would mean lower litigation costs for the buyers.
- Another major change approved by the Cabinet is the proposal to charge equal rate of interest for promoters and buyers in case of default or delays.