Rajya Sabha approves Real Estate Bill

Published by Sharath N on March 11, 2016 00:00:50 AM

Real estate experts welcome the passage of Real Estate (Regulation and Development) Bill 2013 in Rajya Sabha on Thursday. Though the law will protect consumer interest in the realty sector, it may result in rise of the property prices over the time, they anticipated. “Real Estate Bill will safeguard the consumers’ interest but the government should understand that a developer is also consumer to many other agencies.

If the builders’ concerns are not addressed in time, they cannot deliver homes in right time,” said C Shekar Reddy, past president of Confederation of Real Estate Developers' Association of India (CREDAI). He said, “A comprehensive regulatory authority should regulate the costs, approval process, taxes and so on. There is no mention on online approvals, regulation on Stamp Duty or concessions in the bill. Affordable housing is not possible if the taxation of States is not monitored by the Centre.”

Expressing similar views, Vineet Surana, director, APS Property Solutions said, “The much awaited and the most talked about real estate bill which promises more power and authority to the buyer will equally make it dearer, as the developer keeping in mind the regulations and higher risk of project delays will look for higher margins to compensate the risk factors.” “A developer beyond a percentage cannot transfer the funds from a project to other projects, thus ensuring more focus on specific projects and not speculating on multiple projects.

Initial year or two would go on in understanding and getting into practice by all stake holders,” he said. S Ram Reddy, president of CREDAI Hyderabad expressed dissatisfaction over inclusion of the ongoing projects in the bill. He wanted only new projects to be brought under this bill. The law would boost home buyer confidence as well as investment in the realty sector but the government should ensure the regulator does not become another layer of bureaucracy.

“The bill would bring credibility to real estate business and endorse our demand of giving infra status to housing. It will help regulate the sector and promote transparency. If implemented in the right spirit, it could attract huge investments into the real estate sector. Home buyer confidence in property market would also improve in coming years,” said P Dasharath Reddy, president of Telangana Real Estate Developers Association (TREDA).

G V Rao, president of Telangana Developers Association said, “Real estate business will be better organised with the enactment of this law. As the projects will be graded, this will educate the consumer what he is going to buy. Builder and buyer will be financially better organised. 70 per cent funds deposited in escrow account will result in timely completion of the projects.”