India to get much awaited Real Estate Regulator

Updated at 11:30 AM, 6th May, 2015

The much awaited real estate regulatory bill is now in limbo. The revolutionary bill ran aground in the Rajya Sabha. Darn. More updates as the story unfolds. Here is the story as of now;

#Realestate legislation in limbo; govt looks to salvage #GST #bill http://t.co/iei20R6dcF

— JLL India (@JLLIndia_Realty) May 6, 2015

Original Post begins here:

The Indian Real Estate (Regulation and Development) Bill, in the pipeline since 2013 got the nod from the Union Cabinet on April 7th, 2015. This means India is finally slated to get a real estate regulator which could reign in the rampant malpractices of some real estate builders and give the property buyer some much needed respite.

Quick Overview of the Real Estate Regulatory Bill

Here are the important points laid down by the real estate regulator;

#1. Residential, commercial and industrial asset classes shall all fall under the purview of the regulator.

#2. All ongoing projects that have not obtained a completion certificate yet to come under the regulatory body's jurisdiction. Such projects to be registered with the regulator within three months.

#3. Carpet Area is the standard measure of area for selling and advertising real estate from now on.

#4. Fines and legal implications for builders and their projects, not registered with the real estate regulator. This simply means everyone must comply.

#5. Half (50%) of all payments made by buyers to be deposited in an Escrow for construction and development of that particular project. This should significantly reduce project delays due to fund diversions.

#6. Regulator to listen and register cases from aggrieved property buyers and quickly resolve issues and disputes. Buyers are free to approach consumer forums regarding property purchase grievances.

#7. Substantial fine and legal implications for builders for wrong disclosure of information.

#8. Regulator to also monitor real estate micro markets and property agents to boost transparency and best practices in the industry.

#9. Builders must take consent from 2/3rd allottees of a project for change in project plan and design. Furthermore, structural defects, if any to be rectified by builder within 2 years of project handover.

The latest buzz and additional resource links;

Real estate regulatory bill conducive for consumers #Transparency quick approvals and detailing of projects
— Niranjan Hiranandani (@N_Hiranandani) April 8, 2015

Real estate magnate Niranjan Hiranandani loops in the Maharashtra CM in another tweet and says syncing the new regulations with the state's housing policy could boost affordable housing.

Real Estate Regulatory bill needs to be synced with state govt @Dev_Fadnavis Housing policy for producing #AffordableHousing
— Niranjan Hiranandani (@N_Hiranandani) April 8, 2015

Anuj Puri, Chairman and India Head, JLL also shares his views;

The #realestate #bill will introduce #transparency, but can it unshackle the sector? http://t.co/0SDZjcRINe
— Anuj Puri (@AnujPuriJLL) April 10, 2015

Following through the link to that story, what Anuj says makes a lot of sense. Sample this;

"Though the new amended bill reads very positively for inducing transparency and better governance, the continued non-inclusion of government agencies, whose slow approval processes are a major contributors to project delays, remains an issue and needs to be addressed."

Shishir Baijal, Chairman and MD, Knight Frank India also shares his positive feel for Indian property buyers through his tweet sharing an important story;

Long due Cabinet nod for amendments to Real Estate Bill http://t.co/xYflynVivZ
— Shishir Baijal (@shishir_baijal) April 8, 2015

Sushil Mantri, Chairman and MD, Mantri Developers, Bangalore sounds positive about the new real estate regulatory bill. He shares a moneycontrol story in his tweet;

Cabinet amends real estate bill to curb illegal practices. Read more at: http://t.co/BfTGK2GY3l #realestate
— Sushil Mantri (@MrSushilMantri) April 9, 2015

The Modi government aims to clear this bill during the second half of the budget session. Some folks are of the opinion that the bill is diluted and simply not good enough. They must also be heard;

The last straw that would surely break the back of our middle class is govt's move to dilute Real Estate Regulatory Bill 2013: @khushsundar
— Friends of Congress (@friendscongress) April 9, 2015

@friendscongress it will be our stupidity if we(middle class) expect anything good from this #Feku govt! This bill is builders' friendly!
— Harish Reddy (@terrific_10s) April 9, 2015

How it turns out in the end, only time will tell.

Analysts, lost souls and angry mobs: Follow us on Twitter for more on the Indian Real Estate scene. Cheers, The IREFD Team
— IREFD (@indianrealestat) April 10, 2015