The Real Estate Regulator bill ,which was pending in the Upper House (Rajya Sabha) received a boost on Wednesday 9th December 2015 when the Select Committee of Rajya Sabha recommended strengthening its key provisions based on the feedback received from the general population of the country.The 20 recommendations were approved by the Union Cabinet.
These are the changes accommodated in the revised bill…
- Projects constructed on 500 sq mtrs plot area or with a minimum of 8 flats will also have to be registered with the Real Estate Regulator.Earlier this limit was for projects on 1000 sq mtrs and above.
With this change,almost all builders and projects will be under the scanner.
- The Regulatory Authority will now have only 3 months to frame the rules of this law and States will get a max of 6 months to frame the laws after the notification of this Act.Earlier this limit was 1 year.
- Flat buyers will now be required to take possession within 2 months of the project receiving Occupancy Certificate.
- All cases and appeals will have to be decided within 60 days instead of 90 days.
- The Bill also provides an option to set up adjudicating officers and Appellate Tribunal for fast-track dispute resolution.
- Builders will now have to pay equal rate of interest in case of default or delays as home buyers.
- The liability of builders for structural defects that has been increased from the earlier two to five years now.
- Real estate developers will now have to deposit 70% of the project cost in a separate escrow account, from 50% proposed earlier.
- The revised bill also includes an enabling provision for arranging insurance of land title, which will protect buyers and developers from frauds.
- Promoters of the project are now barred from changing plans and designs without the consent of the consumer.
However,strangely,the bill has not addressed the bottlenecks and delays created by govt officers in the Town Planning dept who often delay projects unless they are paid their pound of flesh.
The Final proof will be in the pudding and will depend on how efficiently and quickly all these provisions are implemented.
The final effect of this bill will take at-least another year to take effect.