Real Estate Regulatory Bill Should Maintain "Equilibrium" Between the Realtor and the Public..!

Proposed Real Estate Regulatory Bill should maintain "equilibrium" between the realtor and the public besides regulating the entire industry, industry body CREDAI said.

"..from industry perspective it is important that the Bill maintains equilibrium between the developer's community and end users," Confederation of Real Estate Developers Association of India (CREDAI) National President Mr. C Shekar Reddy said in a statement.

Shatter the dream of 'housing for all:..!

However, Mr. C Shekar Reddy cautioned some provisions in the Bill were required to be modified otherwise it would result in "substantial increase" in the cost to buyers and shatter the dream of 'housing for all". "It will also impact the affordable housing initiative", he said.

To make the regulation effective, the Real Estate Bill should regulate the entire real estate industry covering all its stake holders, he noted.

A Bill providing for setting up a regulator for the real estate sector & having provisions such as jail term of up to 3 years for developers / promoters who make offences like putting up misleading advertisements about projects repeatedly was approved by the government recently.

Real Estate Bill: What's In it For Property End Users?

The Real Estate Regulatory Bill, when enacted into law, will ensure that home or property buyers get timely possession, and as per the specifications promised by developers, say real estate firms and consultants.

Besides, it will improve the image of the realty sector by bringing in transparency, they said.

However, real estate industry experts highlighted that the bill does not provide relief to builders / promoters in getting faster approvals for their projects.

"The bill will pave the way for providing the much needed transparency by seeking to regulate the hitherto largely unregulated housing sector in India" Jones Lang LaSalle India Chairman & Country Head  Mr. AnujPuri said in a statement.

 

The ambit of the proposed law is quite large and seeks to cover all major private residential developments across India as the bill applies to all projects above 4,000 square meters, he added.

Global realty consultant CBRE South Asia Chairman & MD Anshuman Magazine said: "Real estate regulator bill should have been more balanced (while) taking view of challenges faced by developers & consumer grievances."

Recognising that consumers need protection, Mr. Magazine said that administrative reforms are required urgently for real estate development to happen more efficiently and in a transparent manner.

The Central Cabinet recenlty cleared the Real Estate (Regulation & Development) Bill, which among other things, seeks to provide a uniform regulatory environment to the sector.

Hailing the Cabinet's approval of the bill, NAREDCO President Mr. Navin Raheja said: "It is a welcome step. We had been waiting for the same since long as it would bring buyers at ease along with transparency and respect to the sector"

The bill will protect the interest of all stakeholders, people, developers and also help check unscrupulous players in the sector and would streamline the sector, Mr. Raheja added.

Mr. Puri, JLL India said the new laws based on the proposals will provide considerable relief to ordinary buyers and investors who go through innumerable obstacles when buying a property, and at times are duped even by small developers and brokers.

He noted that the proposed laws look at ensuring that construction is not only completed in a timely manner but also as per the specifications that he had been promised.

By seeking to establish the Regulatory Authority & the Appellate Tribunal, the consultant said that the Bill aims to create a dispute resolution mechanism and provide a forum for hearing disputes related to property matters and address the grievances of the consumer.

"Though the Bill will turn out to be a boon for the property purchasers and the consumers, it has received a lot of criticism from developers for not being inclusive in its approach towards them.

"The Bill in its current form does not provide for any relief to them in terms of getting through the cumbersome approvals and permissions process in any expeditious manner" Mr. Puri said.

Supertech Chairman and Managing Director Mr. R.K, Arora said the regulator would definitely going to address issues which will benefit consumers, investors and the industry.

"This is in favour of all and a positive move which has been long pending. The mandatory registration process for any new projects is in favour of customers & will bring confidence and transparency in buying or investing in any such projects and will also improve on the sector's credibility."

CHD Developer COO Mr. Ravi Saund said, "The move was much needed in the sector which is notorious for unscrupulous deals. This would not just eliminate a home buyer's apprehension but also lift the image of the real estate sector."

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