Rajya Sabha Passes Landmark Real Estate Bill
The Rajya Sabha has passed the landmark Real Estate Bill . The Bill was passed with suopport from legislators across the political spectrum. The Bill aims to ensure better regulatory oversight and orderly growth in the industry.
The Key features of the amended Bill are:
- Mandatory registration with real estate regulatory authorities of projects with min 500 sq m area, or those comprising eight flats.
- Project developers required to deposit at least 70% of their funds, including land cost, in a separate escrow account to meet the cost of construction.
- Provision for imprisonment up to three years in case of promoters and up to one year in case of real estate agents and buyers for violation of orders of appellate tribunals or monetary penalties or both.
- A clear definition of carpet area and a system that would require the consent of two-thirds of the buyers in case there are changes in project plans.
- Appellate tribunals to adjudicate cases within 60 days and regulatory authorities to dispose of complaints in 60 days.
- Regulatory authorities can also register projects to be developed beyond urban areas, promote a single-window system of clearances, and grade projects and promoters besides ensuring digitization of land records.
The legislation is designed to protect consumer interest, ensure efficiency in all property related transactions, improve accountability of developers, boost transparency and attract more investments to the sector.