SPMRF Talk on 1st April 2016 : “Importance & Impact of the Real Estate Bill : A Legislative Milestone of the BJP Led NDA Government”

Shri Anil Madhav Dave said that The Real Estate (Regulation and Development) Act 2016 will regulate transactions between buyers and promoters of real estate projects and will set up state-level regulatory authorities to oversee the sector. The Act will regulate both commercial and residential real estate projects and applicable on above 500 Square Meters and 8 Apartments.

He said that the new Act seeks to set up Real Estate Regulatory Authority (RERA) and Appellate Tribunal in States and Union Territories to oversee real estate transactions. The Appellate Tribunal will hear appeals from Authority and Adjudicating Officer so as to clear the grievances of consumers and cut short the long pending cases.

He highlighted that the Act makes registration of real estate projects and real estate agents with the authority mandatory.  The Act mandates that builders should disclose details of all registered projects, including those about the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer etc. All these details should be uploaded on the website of the RERAs. Real estate agents also need to register with the RERAs.

He also spoke on how the new act will bring transparency and how it will help in curbing the use of black money because the new Act makes it mandatory for the builders to park 70% of the amount collected from buyers for a project in a separate bank account. The Bill is expected to boost consumer confidence as it is expected to bring in transparency in the sector.

He said that disclosure of “Carpet Area” for sale will curb unfair trade practices in the sector and will ultimately help the consumers. The Act aims at restoring confidence of consumers in the real estate sector by institutionalizing transparency and accountability.

Shri Dave also spoke on how this Act will help in promoting timely execution of projects thereby achieving the PM Modi’s vision of “Housing for All”.

The Roundtable discussion was attended by Mr. Raj Liberhan, former Director, India Habitat Centre & member, SPMRF Advisory Council, Mr. Dhanendra Kumar, Former Secretary, Ministry of Culture and Former Chairman, Competition Commission of India, Mr. P.P.Shrivastava, I.A.S. (retd), Former Member, North-Eastern Council (NEC), Professor B.B.Dutta, former Member of Parliament and a number of young scholars and professionals.

(Report prepared by Siddharth Singh, Research Associate, SPMRF)