The delay in delivery of your home and a host of related issue plaguing the real estate sector will soon be covered under a path-breaking law after the Rajya Sabha on Thursday passed a historic Bill to regulate the sector in a transparent manner. The Bill will now go to the lok Sabha.
The Bill provides a single-window clearance to developers for all approvals that can help curb corruption at every level. The Bill also provides for imprisonment of up to three years for promoters and up to one year for real estate agents or monetary penalties or both for any violation of orders of Appellate Tribunals.
Both the ruling and Opposition members, barring the AIADMK, joined hands to pass the reform Bill with some additions and amendments. The Congress had extended
its support to the Bill, which was passed by a voice vote in the House.
“The Bill is need of the hour,” said Urban Development Minister M Venkaiah Naidu while moving The Real Estate (Regulation and Development) Bill, 2015 for consideration and passage. He sought the support of AIADMK members, who had opposed the measure.
BJP member Anil Madhav Dave, who was Chairman of the Select Committee on this Bill, received accolades from the BJP and members across the board, prompting former Union Minister Jairam Ramesh to say that the Government should make Dave head of all the committees in future.
Naidu retorted that as Parliamentary Affairs Minister he has no objection to the proposal as far as the House functions smoothly and is ready to discuss and debate things.
The Bill would prohibit unaccounted money from being pumped into the sector and as from now on 70 per cent of the money has to be deposited in bank accounts through cheques.
Naidu said the Bill proposed that a minimum of 70 per cent collections from buyers should be deposited in a separate escrow account to cover cost of construction and land. It will help establish State-level Real Estate Regulatory Authorities (RERAs) to regulate transactions related to both residential and commercial projects and ensure their timely completion and hand over.
“There will be no discrimination of any kind on basis of religion, region, caste, creed and gender and we will include that in the rules,” Naidu said responding to members who had raised a query on the issue.
Naidu said the Government has done its best to accommodate views and suggestions of various stakeholders and different political parties in the matter. The real estate sector is the second-largest employer in the country, next only to agriculture and accounts for about 9 per cent of the GDP and the construction sector supports 250 ancillary industries.
“Such an important sector, over decades has been marked by lack of trust and confidence between the consumers and project developers. In the process, this sector has acquired certain notoriety, adversely impacting the investment climate and hurting the interests of lakhs of home buyers every year,” he said.
Extending the support of her party, Congress member Kumari Selja said consumers were falling prey to unfair practices as there was no regulatory mechanism. “The whole country is waiting for this Bill...Consumers are waiting with baited breath for this,” she said.
“The Congress Party stands committed to the interests of consumers, big or small, and no one should be discriminated against. We stand by this Bill,” she said, adding that though Congress has got many things done and brought this Bill, it does not wish to take credit and BJP may do so.
Former Union Minister Ajay Maken who had written a letter to the Centre expressing desire to expedite the process of passage of Bill, has appreciated and thanked Naidu for his move.
Anil Madhav Dave said though there are regulations in every sector like telecom, power, cable, food and medicines, there was none for the real estate sector which was the biggest as 50 per cent of money was in this sector.
“A regulation is coming in a field in which this country’s money is being pumped in. With the beginning made today, things will become transparent. Through this Bill, there will be no difference between what the developer shows and what he sells. It will have to be the same and all details of the project will be uploaded,” he said.
Naresh Agrawal (SP) wondered if the State laws will be superceded by this Bill and whether States will adhere to this Central law or not. He had earlier objected to introduction of the Bill through a point of order saying land was a State subject and the Bill would take away powers of States.