The new Law will tame the Builders and make ‘Consumer the King’
Both the Builders and Buyers have hailed the new Real Estate Regulation and Development Act,2016. As soon as it was Notified it is being looked upon as a positive step.
The new Law provides that all the States and Central Govt. will promulgate specific Rules for regulation of real estate Sector.
Each State will have its own Regulatory Authority for overall suprevision of real estate projects.
Every Real Estate Project shall be mandatorily registered. Every single Project would have its Guidelines and timelines laid down. In case of breach there would be penalties imposed.
Now onwards related legal disputes being processed through normal courts at a slow pace would be heard by an Appellate Tribunals and decided with time limits of 60 days.
There are time limits for states to pass new laws and set up the boards, etc. The process will, if timelines are adhered to, take about a year or so. Most likely, since state-level governance is very uneven, this will work patchily. Some states will set up efficient Tribunals and Regulatory Boards; others will not.
The new Law is significant as many politicians have interests in real estate Sector. Time will tell if politicians will back the new act or try to hold up to subvert it.
The real estate sector has many problematic issues. There is recession since the past three years, actual prices and “official” prices are wildly at variance, lot of black money is involved and Builders are cash-strapped. Banks too have become cautious and are not happy lending to builders.
Rentals are generally low as compared to percentage of price. Prevailing interests rates are too high.
Many builders are not been able to raise adequate booking amounts which leads to incomplete projects and diversion of funds.
The new Legislation mandates builders to use up at least 70 per cent of booking amount obtained for the specific project.
Over pricing in real estate in India is also a problem as compared to most First World countries.
However, this Act proposes a Real Estate Investment Trusts (REIT) to encourage investments into real estate Sector.
It should bring more transparency in deals and complete disclosure from builders.
Read Real Estate Regulation and Development Act,2016 Here-
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- Administration of Evacuee Property Act,1950
- Benami Transactions (Prohibition) Act,1988
- Benami Transactions (Prohibition) Amendment Act,2015
- Hindu Disposition of Property Act,1916
- Powers of Attorney Act,1882
- Presidency-Towns Insolvency Act,1909
- Public Premises (Eviction of Unauthorised Occupants) Act,1971
- Real Estate (Regulation and Development) Act,2013
- Real Estate Regulation and Development Act,2016
- Requisitioned Land (Apportionment of Compensation) Act,1949
- Requisitioning and Acquisition of Immovable Property Act,1952
- Slum Areas (Improvement and Clearance) Act,1956
- Transfer of Property Act,1882
- Urban land (Ceiling and Regulation) Act,1976
- Urban Land (Ceiling and Regulation) Repeal Act,1999
- Waste Lands (Claims) Act,1863
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