The Real Estate Regulatory Bill Finally Becomes
A Law
Rajya
Sabha passes the bill, which will bring in much needed transparency in the sector and empower home buyers
by Mr. Anuj Puri, Chairman & Country Head, JLL India
The
passing of the long-pending Real Estate Regulatory Bill, which was
being hotly debated and second-guessed
for far too long, is an unequivocal victory for the Indian real estate
sector.
Its enactment as a law will almost single-handedly revamp the
way this sector works across the board, from developers to end-users and
investors, to lending institutions and government
agencies involved in the buying and selling of property.
It is by far
the most decisive step the sector has taken towards transparency and
reaching towards the kind of standardized processes, procedures and
accountability guidelines that the industry requires
to progress.
 |
| Anuj Puri, Chairman & Country Head, JLL India |
In December 2015, many amendments to the bill suggested by a select committee of
Rajya Sabha had been accepted by the Union Cabinet. The
amended bill has now become a full-fledged law and paved the way to
setting up a real estate regulator.
The
real estate industry welcomes the major reform that promises to bring
in much-needed transparency
and accountability to the rather opaque sector. It will create a
much-needed consumer right protection umbrella for buyers of real
estate, thereby increasing consumer confidence as well as creating
lasting developer brands strong on quality and timely delivery
of their projects.
As there will be strict punishment for errant developers as well as fines for project delays and faster
redressal to consumer complaints, the problem of unscrupulous elements in the industry will be addressed.
Norms
on size of projects had been relaxed from 1,000
square meter to 500 square meter, and further reduction in size can be bought under the purview of the regulator by state governments.
A
single-window clearance is needed now, without which there may be cases
where bona-fide delays by developers
may still result in an unfavourable penalty. The time taken to get many
environmental, state-level & municipal-level clearances have
afflicted developers for long.
Without ensuring that the approval
process is not delayed by civic agencies’ inaction or setting
up a single-window system, the regulator may inadvertently add another
layer to the longer processes already delaying projects.
The central government, on its part, has been working to
streamline
approvals as
part of its focus on ‘ease of doing business’ and digitisation to
achieve better transparency.
This law will reduce volatility seen in this sector and build the trust
deficit between both stakeholders – builders and buyers. RERA will
provide a positive impetus towards achieving the housing dream while
ensuring a level-playing field for developers and
buyers.
With
real estate having linkages to the largest number of industries, the
incumbent government has succeeded
against various odds and given Indian real estate its most valuable
card.
The bill is a verdict to end the age of information asymmetry,
lack of accountability and unwarranted project delays, and marks the
beginning of rising transparency, liquidation of assets
- and, importantly, positive sentiment.
For media contact
Arun
Chitnis
Head
– Corporate Communications & Media Relations
JLL
IndiaPune
411001.
Tele:
(020) 30930441 Fax: (020) 40196101
Mobile:
+91 9657129999
Website: www.joneslanglasalle.
Twitter: @JLLIndia
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