Home buyers will not get any respite from fly-by-night operators and defaulting developers in a hurry as the government is in no rush to introduce the much-awaited
Real Estate (Regulation of Development) Bill, 2011 , in the ongoing monsoon session of Parliament. According to sources, the Bill may be delayed by a further eight months.
"The Bill was earlier supposed to be introduced in the monsoon session of Parliament. However, the government is in no hurry to introduce the Bill. There are many pending issues that needs to be resolved," a senior official of the ministry of urban development told
Mail Today.
"The Bill is already lying with the law ministry for consultation but there has been no reply from the ministry as there are other important Bills to be considered in this session. If the government intends it could be introduced in the winter session of Parliament, too," the official said.
Realty deals to get more transparent LOST IN A SEA OF PAPERS
- Govt had proposed to table the Bill in Parliament in 2007
- The first draft of the Real Estate (Regulation of Development) Act was introduced in September 2009
- Final draft of the Bill was sent to the law ministry in the last week of May this year
- Sources say there is no hope for the Bill to pass even in the winter session of Parliament as the government is not pushing through the issue
- The Bill has been in the making for more than 3 years now and has undergone about 9 amendments
BILLING THE CHANGE
- If the Bill becomes law, all developers will have to register with the regulator and provide details of all their projects, including details regarding land acquisition and clearances, before they can advertise the projects. This will protect consumers against fraud
- However, the BIll had kept the pricing of real estate projects out of the government's purview. The pricing will be determined by market forces and dynamics of supply and demand
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The government had proposed to bring the Bill to Parliament as early as 2007. The first draft of the Real Estate (Regulation of Development) Act was introduced in September, 2009. Even after continuous demand from both consumers and developers, the Real Estate Regulation Bill failed to see the light of day amidst protests from developers.
After consultations with real estate sector experts, developers and other stakeholders, the government has now prepared a final draft of the Bill, which was sent to the law ministry last week of May this year.
However, according to sources at the housing and poverty alleviation ministry there is no hope for the Bill to pass even in the winter session of Parliament as the government is in no mood to push through the issue in a hurry.
"The government now intends to make certain changes. They now want consultations with all state governments. The process may take another eight months at least before consensus is arrived at between the state and the Central governments and various ministries. So, we do not see the Bill being introduced at least during the next two sessions of Parliament," an official from the housing and poverty alleviation ministry said. The Bill has been in the making for more than three years now with more than nine amendments being inked into it so far.
The final draft of the new Bill excludes the subjects of land and colonisation as these are state subjects. It deals with consumer interest, fraud, cheating and contractual obligations. If the Bill sails through Parliament and becomes law, all developers will have to register with the regulator and provide details of all their projects, including details regarding land acquisition and clearances, before they can advertise the projects. This will protect consumers against frauds.
However, the Bill has kept the pricing of real estate projects out of the government's purview, which the draft said will be determined by market forces and the dynamics of supply and demand.
Courtesy: Mail Today
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