With a great cheer to the real estate sector, the Real Estate Regulation Bill 2015 was passed by the Rajya Sabha on 10 March, 2016. Urban Development Minister M Venkaiah Naidu, while moving the bill for passage and consideration said that it aims to gain transparency and protect the interest of buyers in the backbone of our economy, real estate sector.
The passage of the much awaited Bill is widely touted as a game changer reform in regulating and bringing order to the vast real estate sector of the country. The Bill was passed by the form of voice note in Rajya Sabha with the support from the opposition Congress.
Naidu said that the Bill was the need of the hour, hoping that it would prohibit the flow of unaccounted money in the real estate sector. While responding to the clarifications in the Bill, he said that there will be no discrimination on basis of caste, creed, sex, religion, region or gender, for which rules will be included. He also added that there has to be a single window clearance for the approvals.
The Bill has also provided imprisonment charges upto three years for promoters in case of any violation of orders of Appellate Tribunals or monetary penalties or both. Real estate agents and buyers are also accountable for up to one year imprisonment on any violations for the same.
The minister also stated that to cover the cost of construction and land, a minimum of 70 % collections from buyers should also be deposited as a separate escrow amount, adding that it will help to establish RERA’s (Real Estate Regulatory Authorities) to regulate the transactions of commercial and residential properties and ensuring the timely completion of projects.
Appellate Tribunals will now need to adjudicate cases in 60 days according to the new Real Estate Regulatory Bill, while the regulatory authorities need to dispose the complaints in 60 days, for which no time frames was indicated earlier.