Real Estate (Regulation and Development) Bill,2016
The salient features of the Bill are as under:
1. Applicable both for commercial and residential real estate projects.
2. Establishment of ‘Real Estate Regulatory Authority’ in States/UTs to regulate real estate transactions.
3. Registration of real estate projects and real estate agents with the Authority.
4. Mandatory disclosure of all registered projects, including details of the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer etc.
5. Deposit of specified amount in a separate bank account to cover the construction cost of the project for timely completion of the project.
6. Establishment of fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal.
7. Civil courts jurisdiction prohibited from taking up matters defined in Bill, however, consumer court allowed to hear real estate matters.
8. Promoters barred from changing plans and design without consent of consumers.
9. Provision of Appropriate Government to make rules for the matters specified in the Bill, and the Regulatory Authority to make necessary regulations.
It seeks to protect the interests of the large number of aspiring house buyers while at the same time enhancing the credibility of construction industry by promoting transparency, accountability and efficiency in execution of projects.
The Bill seeks to put in place an effective regulatory mechanism for orderly growth of the sector which is the second largest employer after agriculture.
Enables the people meet their genuine aspirations of owning a house including those of urban poor by giving a fillip to affordable housing initiative under which the Government intends to enable construction of 2 crore by the year 2022 under Prime Minister’s Awas Yojana (Urban).
The Bill aims at restoring confidence of consumers in the real estate sector; by institutionalizing transparency and accountability in real estate and housing transactions which will further enable the sector to access capital and financial markets.
The Bill will promote orderly growth through consequent efficient project execution, professionalism and standardization.
