Real Estate Regulation Bill Delayed, Key Changes Made to Draft
The much-awaited Real Estate Regulation Bill will not be tabled during the current session of Parliament, a senior official in the Ministry of Housing and Urban Poverty Alleviation has confirmed.
Key Amendments to the Draft Bill
- Imprisonment Clauses Revised: The final draft of the Bill applies imprisonment (up to three years) only in cases of non-registration with the Real Estate Regulation Authority. Additionally, a penalty of up to 10% of the project cost may be imposed.
- Reduced Area Size for Compulsory Registration: The area size for mandatory registration has been decreased from 4,000 square feet to 1,000 square feet, ensuring smaller projects are also brought under the regulatory umbrella.
Industry Reaction
- National Real Estate Development Council (Naredco): Hailed the move as positive, highlighting its potential to curb fly-by-night operators in the real estate sector, particularly those involved in smaller projects. However, concerns were raised about the increased load on the regulatory authority.
- Confederation of Real Estate Developers Association of India (Credai): Advocated for no limit on registration, emphasizing that all developers should fall under the Real Estate Regulation Authority's purview.
Objective of the Proposed Legislation
- Establish an authority to regulate, control, and promote planned and healthy development in the real estate sector.
- Oversee the construction, sale, transfer, and management of colonies, residential buildings, apartments, and similar properties.
- Maintain a website containing all project details for transparency.