Real Estate Bill passed; how it will benefit homebuyers, developers and sector

By: | Updated: March 10, 2016 6:05 PM

Real Estate Bill: Union Minister for Urban Development Venkaiah Naidu said it is historic day for housing sector as PM’s guidance and support of Parliamentarians fulfilled long pending dream of home buyers.

Real Estate Bill passedReal Estate Bill passed. Union Minister for Urban Development Venkaiah Naidu said it is historic day for housing sector as PM’s guidance and support of Parliamentarians fulfilled long pending dream of home buyers. (Express photo by Anil Sharma)

Rajya Sabha on Thursday passed the Real Estate Regulatory Bill. The move will cheer homebuyers and developers alike and will give a fillip to the realty sector, which has been facing slowdown during recent years.

Union Minister for Urban Development Venkaiah Naidu tweeted, “it is a historic day for housing sector as PM’s guidance and support of Parliamentarians fulfilled long pending dream of home buyers.”

We take a look at how the Bill will benefit the sector, homebuyers and developers:

How the bill will benefit real estate sector

-Promote timely execution of projects thereby achieving the objective of housing for all
-ensure speedy adjudication of disputes and orderly growht of the real estate sector through efficient project execution, professionalism/standardisation
-Bill aims at restoring confidence of consumer in the real estate sector by institutionalising transparency and accountability
-Like other sectors such as telecom, electricity, banking, securities insurance etc provides for specialised regulations and enforcement
-Will boost domestic and foreign investment in the sector and help promote private participation
-Illegal and unplanned development due to absence of regulator would end

How the bill will benefit home-buyers

-Make operations transparent, promoting informed choice for buyers
-Disclosure of ‘carpet area’ for sale will curb unfair trade practices
-Model agreement would end one-sided agreements
-Time and cost overruns due to funds diversion will be controlled
-Will help curb black money and speculation leading to price controls
-Indefinite delay in dispute resolutions in civil courts will end
-Bill provides curative and preventive measures with powers to enforce specific performance unlike consumer protection laws

How it will benefit developers

-Weed out fly-by-night operators from the sector
-Will infuse credibility by making the sector mature on the lines of securities, banking, insurance etc
-Channelise investment into the sector:
Huge unsold stock as consumer confidence is low
Bill would restore investment sentiment of consumers and help address inventory pile-up
National Housing bank and financial institutions have demanded enactment of bill as lending is very risky without regulatory mechanism in place
Foreign investment (FDI/ECB) not showing interest in India’s real estate sector due to regulatory volume.

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