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Real Estate Regulation Bill 2013 brings smile on faces of home buyers
Home buyers in Delhi-NCR have hailed the government step to bring the real estate regulation bill while saying that the provisions in the bill will definitely protect their dreams of owning a home.

Chandra Mohan, a resident of Noida who has invested a significant amount in an upcoming project in Noida Extension, expressed hopes that the bill would ensure a timely possession of his dream home.

“The builder has assured possession in 2016. Based on the experiences of some of my friends, I too had doubts over the timely allotment of the flat. However, with the introduction of the real estate regulation bill and the provisions laid down in it, now I am sure that I will get my home in time,” said Mohan.

Union cabinet approved the Real Estate (Regulation & Development) Bill 2013 with an aim to promote fair-play in real estate transactions and introduce penal provisions for developers who do not stick to norms. On the lines of telecom watchdog the Telecom regulatory Authority of India, the Real Estate Regulation Bill creates a regulator for the realty sector.

Housing and Urban Poverty Alleviation Minister Ajay Maken said the bill would be introduced in the monsoon session of the parliament. He said that the bill will help protect consumer interests and help in speedy adjudication of disputes along with providing a uniform regulatory environment. Maken said that the bill has the support of majority of the states.

However, in an e-mailed statement to this citizen journalist Chairman and Managing Director of CBRE South Asia Pvt. Ltd., the global leader in real estate services, Anshuman Magazine said the real estate regulator bill should have been more balanced taking view of challenges faced by developers and consumer grievances.

“While consumers need protection, for real estate development to happen more efficiently, and in a transparent manner, administrative reforms are required urgently,” he said.

The bill will curb the practice of pre-launching residential projects by the developers in order to collect funds from the buyers as it has been made necessary for them to get all the important clearances before they sell apartments. This provision has been added to the proposed bill in the wake of several complaints by the buyers that after making payments they come to know that the builder has not cleared land acquisition permissions.

As per the laid down provisions in the bill, the developers will need to put aside 70 per cent of the proceeds of a particular project in a bank account. The step has been taken to prevent the builders from diverting funds meant for construction and ensure timely completion of projects.

The bill which is applicable only to residential projects has provisions of penalty if a developer comes out with misleading/ deceptive advertisements about his project. The first time offenders have to pay 10% of the total project cost, however, if they repeat the offence they may have to face a three-year jail term.

The bill also states that the builders can take only 10% of the total cost of the home in advance from the buyers. If they want more than 10% then they have to enter into a written agreement with the buyer. The bill says that if delay happens in the completion of the project the buyers are entitled to get full refund with interest.

Until now, builders would sell their flats to buyers on the basis of super area which is 25-40% more than the actual usable area. However, the bill now makes it mandatory for the developers to clearly mention the carpet area of the house, which is actually the usable area.

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