Real Estate (Regulation and Development) Bill 2015 deals with the real estate projects of commercial and residential purpose.
How the act deals with major issues:
- Illegal and Fraud projects: It creates Real Estate Regulatory Authority with which all builders should be registered and all project details like plan/design, promoters, land status,approvals etc should be disclosed
- Delay in dispute resolution: Establishment of fast track dispute resolution mechanism to resolve any conflicts through adjudicating officers and Appellate tribunal.
- Usage of Funds: Compulsory deposit of 70% of fund raised from buyers in a scheduled bank within period of 15 days to cover the cost of construction.
- Design change: Consumers consent must be taken before any changes to proposed design of the project.
However there are other key areas which this act does not touch.
- Construction delays caused due to the compulsory registration which involves bureaucracy affecting builders and buyers alike
- Deep and corrupt nexus between politicians, officials and builders is left untouched which is one of the main concerns for the home buyers
- Price rise and demand –supply price distortion has got any attentions in the law which will have large and heavy impact on the consumer
Though some key consumer concerns have got no place in the act, it helps in increasing the accountability and transparency thus consumer gaining some confidence in the real estate sector which will increase the capital and financial markets for the sector.