Real Estate Bill Taking Shape, says Government

The government is in the process of drafting the Real Estate (Regulation & Development) Bill. This was stated by the counsel appearing for the Union Urban Development Ministry before Supreme Court which was hearing a PIL.

The Supreme Court had on Monday expressed displeasure over the delay by the government in setting up of a real estate regulator to keep a check on the activities of realtors.

"How many more years will it take," a bench of Chief Justice HL Dattu and Justice AK Sikri said. The observation came during the hearing of a PIL on unethical practices by real estate developers, including misleading advertisements by builders.

Additional Solicitor General NK Kaul told the court that the Cabinet had considered the issue on December 17 last year and a new Cabinet note is now being drafted.

Kishor Pate, CMD at Amit Enterprises Housing, said the real estate industry expects the Budget to finally make the Real Estate Regulatory bill a reality this year, so that the industry has the benefit of an apex body via which all concerns can be addressed transparently and efficiently.

The bill, which was introduced in the Rajya Sabha in 2013, seeks to protect home buyers from unscrupulous developers. It was then referred to a Parliamentary Standing Committee, which had submitted its report in February, 2014. The Bill provides for mandatory registration of all projects, besides mandatory disclosure of information like details of promoters, layout plan, land status, schedule of execution, status of various approvals and carpet area.

It also seeks to enforce the contract between the developer and buyer and provides for quick remedial measures in case of disputes.

As per reports, the NDA government wants two changes to the Bill that was originally drafted by the UPA. The changes relate to bringing down the percentage of receivables from home buyers that have to be kept in the escrow account for the purpose of construction from 70 per cent earlier to 50 per cent. The second change the government wanted was to also bring the commercial segment under bill that earlier proposed to regulate residential projects only. (With PTI inputs)