The Real Estate (Regulation and Development) Bill has been passed by the Rajya Sabha as well as the Lok Sabha it is set to become an act in a few months. Once passed it will change the way Real Estate was being dealt with, in the past.
The new act is a blessing as it will bring and safety for the home buyers in the city with the regulator being mandated to ensure this.This is also a blessing in disguise for the developers as it will bring credibility to them and people including NRIs will be willing to invest their funds in this sector.
Under the provisions of new bill any project over 500 sq mt area or 8 flats must be registered with regulatory authority with full disclosure – details of promoters, project, layout plan, plan of development works, land status, status of statutory approvals, etc. as well as the details of their past and ongoing projects. New projects can be launched only after the developer secures all statutory clearances from relevant authorities and the promoter must upload details of the project on the website of the RERA.
The bill bars the promoter from altering plans, structural designs and specifications of the plot, apartment or building without the consent of two-third allottees after disclosure.
The bill also seeks to establish fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal. Consumer courts are allowed to hear real estate matters. There are 644 consumer courts in the country. The more avenues for grievance redressal would mean lower litigation costs for the buyers. Appellate Tribunals will now be required to adjudicate cases in 60 days.Any developer who violates the order of the appellate tribunal can be jailed for three years or fined or both.
Currently, if a project is delayed, then the developer does not suffer in any way. Now, the law ensures that any delay in project completion will make the developer liable to pay the same interest as the EMI being paid by the consumer to the bank back to the consumer.
The bill specifies that in case there is substitution of developer or builder, the new promoter will assume all the liabilities and the change won’t trigger any extension of the deadline. The buyer will have the right to get all details of the project including government approvals and floor plan besides quarterly progress. The bill mentions the regulator won’t extend the deadline for completion of project beyond one year in normal circumstances.