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Wednesday, 5 June 2013

The Union Cabinet of India approved the Real Estate Bill 2013

The Union Cabinet of India on 4 June 2013 approved the Real Estate (Regulation and Development) Bill 2013 to set up a regulator for the real estate sector in the country. This was done with the objective of protecting home buyers from dishonest builders. The bill seeks to make it mandatory for developers to launch projects only after acquiring all the statutory clearances from relevant authorities.
It also has provisions under which all relevant clearances for real estate projects would have to be submitted to the regulator and also displayed on a website before starting construction work. A real estate regulator will be set up in every state. It will ensure that private developers get all their projects registered with it before sale and only after obtaining all necessary clearances.
The commercial real estate is not covered under the purview of the proposed bill. However, it will apply to residential buildings. The bill has a provision for mandatory public disclosure of all project details such as lay out plan, land status and credentials of promoters etc.
An adjudicating officer in the state will be appointed by the authority for fast tracking settlement of disputes. There will be Real Estate Appellate Tribunal as per the bill. It will hear appeals from orders, decisions or directions of regulator and adjudicating officer.

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