REAL ESTATE BILL HOPEFUL TO SEE A GO THIS MONSOON

SESSION

The real estate sector of India had for long started to share a rough image amongst buyers
and its associates which has now become even worse with the market unable to perform up to
the mark. Possession delays, hidden costs, fraudulent by builders, not following of legal
norms and much more had forced the customers to raise a loud voice which has finally
reached to the ears of the government. The union cabinet had approved the bill and starting
this monsoon session on 21st July; all eyes will be fixed on the news for Real estate
Development and Regulation Bill which is to be tabled. The buyers of property market in
particular will be waiting for the decision to come out which guarantees safeguarding of their
rights and interests.
It is very imperative to understand that the demand and respect of real estate sector has
been moving downward for several years now attributing to the negatives pertaining in this
sector such as fraud committed by several builders, possession delays and absence of a
monitoring body, and this will continue if proper action is not taken. Once the real estate bill
gets operational in our country, the most prominent change that we will all witness will be
that customers will get their rights and have a place to submit their queries and someone will
actually answer to it, says Mr. Ashok Gupta, CMD, Ajnara India Ltd. It is actually true that
Indian real estate sector was losing its respect due to the false occurrences in the sector. These
happenings were pushing the potential customers away from the market as there was no body
to trust and look upon in case of a grievance. Not only does the domestic demand face the
steam but most international companies feel that India is not a safe country to invest into as
there are problem creators more than problem solvers. As a result, foreign investors are
unable to enter and retain themselves into the Indian market. Mr. Deepak Kapoor, President
CREDAI Western UP & Director, Gulshan Homz states that We as a country is dreaming big
with announcements of Smart India mission which requires a lot of FDI. Now, if we seriously
wish to make sure that this dream is turned into realty we have to safeguard the interests of
both, international players as well as its domestic users. Only then can we see FDI coming
and retaining here. Also, a regulator sitting in the middle will make sure that transactions are
properly monitored and real estate buyers are not mishandled. This will ensure steady growth
of the sector and we will have a new and credible face of Indian real estate sector.
Decoding the bill:
Following points will help us in better understanding how the Real Estate Bill will help the
property buyers:
Each state will get a real estate regulator which will help in settlement and imposition
of compensation. All residential and commercial projects will have to now
compulsorily be registered with the regulator so that buyers can have access to valid

projects. Even the ongoing projects that have not received the completion certificate
will be covered.
Without a prior registration with the real estate authority, developers cannot advertise
or launch projects.
Developers will now have to sell property on the basis of carpet area and not super
area.
In order to ensure transparency about the projects, developers will have to disclose
layout plans, submit clearances and name the associates, architect, contractor and
others with the regulator.
For timely completion of the projects, promoters will have to deposit 50 percent of the
amounts realised from the buyers in a separate bank account within 15 days for
construction purposes.
The real estate sector is one of the largest contributors to the Indian economy and
at the same time creates a massive pool of employment opportunities. Thus, it
becomes evident that this sector should be worked upon the most and this bill is the
current need of hour. With this bill in place, every state will have a regulator who will
be continuously supervising and watching. Moreover, the projects will now be
completed on time and developers will have to submit all the layouts and documents
with the regulator which will ensure transparency and hence, customers will feel more
secure while transacting, enumerates Mr. Praveen Tyagi, CMD, VVIP. Looking on
the flipside, Mr. Kushagr Ansal, Director, Ansal Housing believes that Not every
buyer will be benefitted. Projects that are completed or stuck due to clearance or
financial issues dont come under this. Also, we have been a witness of how delays
are caused by certain authorities which takes a lot of time to get the projects cleared.
And now since developers will be extra careful, launch of projects are surely to get
delayed which can lead to lesser supply than demand. Apart from these factors, the
bill is all clear and ready to help the buyers in the realty sector.

Consent of two-third buyers will be required to alter plans, structural designs and
specifications of the building. They will have the responsibility to rectify structural
defects and refund money in cases of default.
Brokers will also have to be registered with the real estate regulator; non-compliance
of which will be punishable.
In case of failure of timely delivery of projects, the buyers can claim refund with
interest and compensation.
In cases of violation of rules by the developers, projects will be de-registered and
attract heavy penalties. Non-compliance will invite fine up to 10 percent of project
cost and misinformation will cause a fine of 5 percent of project cost.
The loss in taxable income caused by builders asking the buyers to pay certain amount
in cash will now be curbed, thus eradicating corruption.
Mr. Rajesh Goyal, MD, RG Group says The bill is aimed at protecting the interests
of consumers, and also seeks to promote fair play in real estate transactions and
ensuring timely execution of projects. These amendments will bring the much needed
transparency in the sector as well as will attract FDI. The Real Estate Bill provides for
a uniform regulatory environment and will also protect the interest of all players

amicably, besides helping speedy adjudication of disputes and ensure an orderly

growth of the real estate sector. Adding to the fact, Mr. Rupesh Gupta, Director, JM
Housing states If the economy of this country has to grow, then it is most crucial that
real estate sector performs, and performs really well. This performance will come out
only when there is transparency and faith of the buyers and other associates. Real
estate bill clearly identifies the loopholes pertaining to this sector and protecting the
interest of the buyers which is its core responsibility. Once well have a regulator on
board, things will change drastically and customer sentiments will greatly improve.
The road ahead:
With a lot of plans laid down by the government with respect to Smart Cities, AMRUT,
Housing for all and Make in India, this bill will play the most crucial role in shaping up the
future. Thus, the Real estate bill is most vital to be passed this monsoon session as a lot of
hopes are relying on it. With the Goods and Service Tax (GST) bill in the pipeline, it will be
significant for the government to get the Real estate bill passed in this very session. Buyers
will be overjoyed and we will have a better real estate sector to with in the coming times.