The real Estate (Regulation and Development) Bill, 2013 is passed by Rajya sabha today (10th of March 10, 2016). The bill is touted as a key reform measure in the massive real estate sector.
Highlights of the proposed bill:
1. The real estate bill seeks to set up a Real Estate Regulatory Authority (RERA) in the states and union territories. Once the above bill becomes an act, the home buyers can approach RERA for redressal of their grievances against the developer instead of going to consumers or civil courts.
2. It is compulsory for all real estate projects (both for commercial and residential) of over 500 square meters or eight apartment to register with the regulator before launching the project.
3. The developers will have to deposit 70% of the money collected from the customers in a separate escrow account in banks through cheques. States can further increase the above ceiling limit. The amount available in such escrow accounts can be utilized only for the cost of construction and land. The new rule expected to restrict the developers from diverting the funds collected from buyers of property to start new projects.
4. The new regulation defines carpet area and usable space and imposes strict regulation in the matter of completion of construction in time. The above rule is expected to provide a great respite to the buyers, as the new law would enable the buyers to get the property at assured time and specifications.
5. The bill stipulates that the buyers of property cannot be discriminated on the basis of their religion, region, caste, creed or gender.
6. A developer may also approach the Regulator in the case of any issue with the buyer. The new bill proposes penalty on the buyer for not paying the dues on time.
7. Developer is liable to repair structural defects up to 5 years.
8. Non-adherence of regulations attracts the penalty of 10% of the project cost and repeat violation may land the promoters in jail up to three years. The real estate agents and buyers may be sentenced to up to one-year imprisonment or monetary penalties or both in the case of violation of orders of Appellate Tribunals.
9. Regulatory Authorities shall dispose of the complaints within 60 days. The Real Estate Appellate Tribunal shall adjudicate cases within 60 days.