March 11, 2016: Rajya Sabha (RS) passes Real Estate Bill

March 11, 2016: Rajya Sabha (RS) passes Real Estate Bill

General Studies: Daily Capsule

Curtain Raiser –News Update (March 11, 2016)

Rajya Sabha (RS) passes Real Estate Bill

“Rajya Sabha approved the Real Estate (Regulation and Development) Bill, 2016 that seeks to protect the interests of the large number of aspiring house buyers while at the same time enhancing the credibility of construction industry by promoting transparency, accountability and efficiency in execution of projects. The Bill seeks to put in place an effective regulatory mechanism for orderly growth of the sector which is the second largest employer after agriculture.” [1]

 “The Bill requires setting up a new regulator for the real estate sector. Just as you have SEBI and IRDA for the capital markets and insurance industry respectively, an authority will be created to help frame policies for the real estate sector. 

And as real estate comes under the purview of state governments, individual States are responsible for setting up the Regulatory Authority at the State level. State-level authorities, called Real Estate Regulatory Authorities (RERAs), will now regulate transactions related to both residential and commercial projects. “ [2]

Other Features:

—It’s mandatory for developers to deposit 70% money from buyers in a third-party bank account

— Regulatory authorities have 60 days to dispose of complaints

— Bill has a provision for imprisonment of up to 3 years in case developers are found guilty of fraud

References:

1. http://pib.nic.in/newsite/PrintRelease.aspx?relid=137670

2. http://www.thehindubusinessline.com/economy/more-power-to-the-home-buyer/article8337416.ece