Rajya Sabha has been passed Real Estate (Regulation & Development) Bill, 2015 to protect the interests of consumers and curb the malpractices in the real estate sector. The bill seeks to create a uniform regulatory mechanism across the country and enhance the growth of construction sector. It also ensures to bring transparency & accountability in the real estate sector to access capital and financial markets essential for its long term growth.
Key Features:
- Establishes state level regulatory authorities called Real Estate Regulatory Authorities and tribunals called (REAT) Real Estate Appellate Tribunals to settle disputes.
- Enforces the contract between the developer & the buyer and fast track the mechanism to settle the disputes. 70 percent of the amount collected from the buyers for a project must be maintained in a separate bank account and must only be used for construction of that project.
- State government can alter this amount to less than 70 percent. In case of delays in completion of projects on time, developers will have to pay the same penal interest rate as the buyer does.
- All information for registered projects must be disclosed on website of RERA. It will include details of promoters, land status, layout plan, schedule of execution and status approvals.
- Promoters and real estate agents register project details with RERAs who intend to sell any plot, apartment or building.
- The commercial real estate also has been brought under its ambit. Projects under the construction are also required to be registered with RERAs.
- The term carpet area has been clearly defined in order to eliminate any scope for wrongdoing.
Rajya Sabha passed the Real Estate (Regulation & Development) Bill, 2015
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