Till the 1980s, real estate sector was largely the province of State institutions with very limited role of private promoters. With the economic liberalization, private sector has been given a deliberate boost in construction industry and the sector today is appraised to contribute immensely to the country’s GDP.At present, this sector is largely unregulated and cloudy, which hardly gives the consumers the complete information.
At this juncture, the long awaited Real Estate Regulatory Bill has been viewed as a boon. It incorporates a handful of new recommendations, which has been approved by the cabinet, and recently by Rajya Sabha.The Real Estate Regulation and Development Bill has been projected as a spearheading initiative to protect the consumers’ interest, to ensure fair play in the sector, and speed up the timely execution and delivery of projects. This has come at the time of piling up of inventories that pulls down the progress in the Indian real estate sector.
Many progressive alterations have been made in the original draft for adapting to the changing scenario. Some of the major amendments are mentioned below:-
· Creating an escrow account for a real estate project was a part of that initiative, which did not subsist before. This demands a real estate developer to maintain a minimum balance of 50% of the funds collected, which will be pooled for development of the project.
· The bill puts a clutch on the developer’s liberty to make changes in the original plans of the projects, after registration.
· It includes commercial office projects, which was not embraced in the law before. Though 85% of the Indian real estate market consists of the residential sector, it helps the sector to open up more opportunities for the flourishing business.
· Real estate brokers and agents are also incorporated in the amended bill, which is likely to put an end to the foul play in the sector.
· It promises the customers to approach the consumer courts in case of any grievance. This assures speedy adjudication of disputes.
Besides, these measures are undertaken to boost up domestic and foreign investment in the sector. Hence, through private sector participation, this start off can facilitate the government in achieving the goal of ‘Housing for All by 2022.’
With the forward looking amendments raised in the bill, it is being perceived as a strong tool to make the fortified Indian real estate sector transparent and accountable by significantly reducing frauds and delays. Making this sector alive by giving teeth to the law, it enhances the confidence of people in investing in real estate, which has been hitherto viewed as a den for parking black money.