Lok Sabha has finally passed the Real Estate Bill that aims at setting up a proper mechanism to protect the buyer’s rights by giving an assurance of on time delivery offered by the builders and recourse it if a delay occurs.
The Real Estate Bill was remaining pending till 2013 until March 10th when Rajya Sabha finally passed it. As soon as the bill was cleared by Lok Sabha, Venkaiah Naidu, the Urban Development Minister tweeted
“Extremely happy that the Parliament cleared #RERABill, much-awaited legislation in the Housing Sector.”
” did my duty. States are given Power. Now States should follow it up with timely approvals… #RERABill.”
“Single window approval system is being developed for ensuring timely completion of housing projects #RERABill.”
Mallikarjun Kharge an opposition leader in Lok Sabha also spoke about passing the bill in the lower house.
The bill declared that the builders will not be able to advertise or sell their properties till the project is completely registered under a regulatory authority and they receive approval from them. This regulatory authority will be established in all the states for resolving any dispute. Not just the completed projects but the undergoing projects will even have to be registered.
While registering a project, the builder will have to reveal all the information about the project that will be including the details of the project plan, schedule, promoter, blueprints of the project, approval status and the empowering buyers.
The buyers will be able to know the apartmentÔÇÖs carpet area rather than just having the knowledge of the built are.
The bill also mentioned that 70 percent of the amount collected from the buyers will have to be deposited into a different account and that amount can only be used for land payments or construction, to ensure that the money is not invested in any other projects as the builders have been doing in the past.