NEW DELHI, December 9: Union Cabinet on Wednesday approved the Real Estate (Regulation and Development) Bill, 2015, as reported by the Select Committee of Rajya Sabha.
The Bill will now be taken up for consideration and passing by the Parliament.
Chaired by Indian Prime Minister Narendra Modi, cabinet gave the nod to the Real Estate (Regulation and Development) Bill, a pioneering initiative to protect the interest of consumers, promote fair play in real estate transactions and to ensure timely execution of projects.
The Bill provides uniform regulatory environment to ensure speedy adjudication of disputes and orderly growth of the real estate sector. It will boost domestic and foreign investment in the Real Estate sector and help achieve the objective of Government of India to provide 'Housing for All' by enhanced private participation, according to a release.
The Bill ensures mandatory disclosure by promoters to the customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority.
The Bill aims at restoring confidence of consumers in the real estate sector, by institutionalising transparency and accountability in real estate and housing transactions which will further enable the sector to access capital and financial markets.
The Bill will promote orderly growth through consequent efficient project execution, professionalism and standardisation.
The salient features of the Bill include applicable both for commercial and residential real estate projects and establishment of 'Real Estate Regulatory Authority' in States/UTs to regulate real estate transactions.
Registration of real estate projects and real estate agents with the Authority, mandatory disclosure of all registered projects, including details of the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer are other features of the Bill.
It has also specified that deposit of specified amount in a separate bank account to cover the construction cost of the project for timely completion of the project.
The Bill envisages establishment of fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal.