Amendments to realty Bill leave home buyers ‘in the lurch’: Cong

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New Delhi | Published: April 8, 2015 9:52:25 PM

Congress criticises government's plans to bring the amended Real Estate bill.

Congress, Real Estate bill, Budget session, Real Estate Regulatory Authority Bill, 2013 realty business,builders, Appellate Tribunals, Real Estate news, business news, Real Estate bill AmendmentCongress criticises government’s plans to bring the amended Real Estate bill. (Reuters)

Congress today tore into the Union Cabinet over the amendments it has approved to the real estate bill as it alleged that the move leaves the home buyer “in the lurch” in favour of the builder mafia and real estate sharks.

“The Bill as amended by the Cabinet yesterday does away with the provision of holding directors and company secretaries of real estate firms accountable and also the provision that a realtor could be blacklisted for defaulting twice,” party spokesperson Khushboo told reporters.

She claimed that the Narendra Modi government has struck at the “soul” of the Real Estate Regulatory Authority Bill, 2013, by diluting the clause that provided for 70 per cent of the amount realised by a builder in advance payments to be kept in a separate account to meet the cost of construction.

Among other things, the amendments seek to make it mandatory for all developers, including of housing projects, to keep a minimum 50 per cent of the funds collected from buyers in an escrow account to meet construction costs.
Khushboo also claimed, citing reports, that the provision for revocation of the licence of the promoter in case of default has also been diluted, against the interests of consumers.

She insisted that the 2013 Bill brought by the previous UPA-II was a pioneering initiative to protect the interests of home buyers and to promote fair play in real estate transactions along with ensuring timely execution of projects.

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