The NDA government led by BJP is now all set to push the real estate bill to curb black money circulation in the real estate sector. The bill also talks about commencing a buyer grievance redressal system.
The government wants to make the sector consumer friendly for the middle class by making the real estate transactions more transparent and ensuring that this particular sector does not cater only to the rich.
As per government sources, Narendra Modi seems to be keen on the real estate bill expedition since it will protect the consumers from the dubious players in the real estate market.
In December 2014, the Real Estate (Regulation and Development) Bill had come up in the cabinet, but was deferred. Presently, a new cabinet note is ready for government’s approval.
Housing and Urban Poverty alleviation, the nodal ministry has removed the bar on buyers approaching consumer forum in case of any dispute. By addressing concerns over project completion timeline, redressal and funding transparency, the bill aims to help genuine buyers.
Under the new government, the ministry, after discussions with stakeholders, sent a note for the Union Cabinet’s approval in December. The Modi government amended the UPA bill to cover commercial properties. The earlier bill covered only residential real estate. The government also snipped the quantum of receivables from buyers that have to be kept in escrow account for other ventures from 70 per cent to 50 per cent, to ensure that consumers’ money was not diverted to other projects before delivering the earlier ones.
Meanwhile, the Supreme Court had also expressed concern over the delay in setting up a real estate regulator to keep a check on activities of realtors.
Source: Hindustan Times