Realty Bill soon to be introduced to safeguard retail home buyers
The housing ministry plans to include commercial and industrial real estate under the Real Estate (Regulation and Development) Bill, 2013 which is expected to be brought to the Parliament in the monsoon session. The ministry official mentioned that a proposal would be soon sent to M Venkaiah Naidu the housing and urban poverty alleviation minister, for approval and then to the Cabinet for passing the same.
The motive of the bill is to safeguard the buyers from erring developers and bring in transparency which in turn aims at regulating only the residential real estate.
Samantak Das the chief economist, director, research and advisory services, Knight Frank India mentioned that a regulator is needed mainly for the residential segment. Commercial real estate is a kind of business venture and is self-regulated. Occupiers are there on a lease basis and are companies which have money power. One has to look to safeguard interests of retail investors which are there in the residential sector and often are taken for a ride by the realtors. He also suggested that this regulator should also include the authorities who give approvals and curb the malpractices there too.
However the industry has been opposing the introduction of the Bill as they are afraid that they might be subjected to strict penalties/punishment if they fail to comply with certain provisions. It also makes it mandatory for the developers to launch projects only after acquiring all the statutory clearances from relevant authorities. However the home buyers are elated with the bill and are waiting for its approval in the parliament.
Source- Business Standard
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