Real estate sector needs regulatory Bill
The government is likely to come up with a Real estate Bill, which is pending in the parliament since 2009. The sector is in urgent need of this bill as the industry is known for foul business and less transparency are practiced widely.
The real estate sector contributes five to six percent of the country’s GDP but to double the growth, the sector needs more regulation. If the regulation bill is implemented, it will control all the double -dealing and false practices happening in this sector. The Bill will also cover the construction development sector that includes built-up infrastructure, townships and housing.
Till now Indian real estate has been dominated by real estate developers, promoters and developers. The sector does not have any restriction for the developers.
When the economic condition was sluggish, many real estate companies have gone missing leaving the investors into trouble. Some builders set their project at lower price and sell the properties at lesser cost but in such kind of situation it is very much necessary to check the past records, without believing them completely.
The major problem in the real estate sector is the delay in possession. Home buyers who are buying under construction flats are getting trapped into this problem.
It is expected that if the proposed regulatory bill comes into effect, it may reduce the delays to some extent. As per the bill, private real estate developers have to register the projects before selling it to the property buyers.
To register the bill, developers need to have all necessary clearances which will create transparency in the real estate sector. The developers also have to disclose project details and any kind of contractual obligations with the property buyers to maintain fair and reduce fraudulent business.
If the developers fail to provide clearance status to home buyers then the bill will impose fine up to 10 percent of the total project cost or three years of imprisonment. The bill also says that the developers have to sell the property based on carpet area and not on the basis of super area, which is currently happening. This will give a little relaxation to home buyers on property buying and will also bring transparency in the realty sector.
The Regulator Bill will hopefully safeguard consumer’s interest from false business. It can be expected that the construction quality and service offered by developers to improve after the introduction of the Bill.
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gross domestic product, home buyers, Properties in India, Property Buyers, Real estate bill, Real Estate Developers, Real estate sector in India, Real-estate market
