By Accommodation Times News Services
The Real Estate (Development and Regulation) Bill, 2013, which is said to bring transparency in the sector and reduce the malpractice going on in the sector through regulatory mechanism, is expected to be passed in the forthcoming Winter session of Parliament.
All the amendments in the Bill proposed by the Rajya Sabha Select Committee are approved and accepted by the Housing and Urban Poverty Alleviation (HUPA) Ministry. Now the Ministry will propose the amended legislations for the cabinet’s approval and after that, it will be tabled in the Parliament.
The bill will set up a regulatory framework that will govern contracts between home buyers and sellers. A regulator to reduce malpractices in the real estate sector, which is one of the biggest sinks of black money, was long overdue.
As per the amendments proposed by the Select Committee, there will be parity in the interest payable by consumer and developer in case of any default by either. At present the scales are tilted heavily against the consumers.
The developers pay only 2 to 3 per cent interest in case of default on their part but the consumer pays 16-18 per cent interest for his/her default. The Rajya Sabha panel said in its report that “the interest rate payable by the promoters as well as by allottees shall be same in eventuality of any default by either of them.”
The Select Committee has also recommended that 50 per cent of payments made by home buyers for a real estate project be kept in a separate account and used for that specific project only.
In addition to penalty provisions of up to three years’ imprisonment proposed by the government, the committee introduced imprisonment clause for a realtor failing to abide by the orders of the appellate tribunal.