Developers Differ on the Real Estate Regulatory Bill as it is 'One-Sided’
Real estate developers have voiced varying opinions on the real estate regulatory bill, which is anticipated to be introduced in the upcoming parliament session. The bill contains provisions that could impose significant burdens on defaulting builders, including potential jail time, while buyers who default are not subject to similar punishments.
Perspectives on the New Regulatory Bill
Some builders believe the bill will help curb and control unscrupulous activities within the industry. Mr. Pradipta Kumar Biswasroy, the Odisha Head of the Real Estate Developers Association (REDA), asserted that a commission is necessary to oversee the real estate sector. He pointed out that the current lack of robust laws allows many dubious builders to operate, thereby tarnishing the sector’s reputation.
Mr. Biswasroy added that the introduction of the new real estate regulatory bill could significantly alter this situation by regulating such unscrupulous builders. He believes the bill will foster more systematic growth within the sector. The bill mandates prior registration of builders for all larger projects, without which they will be unable to proceed with development.
Anup Kumar Mohapatra, a builder from Bhubaneswar, suggested that the bill should include provisions for a single window clearance. He advocated for a more balanced approach that is favorable to both buyers and builders, rather than being one-sided. Many builders view the bill as unfair, as it primarily addresses the punishment of builders without similar penalties for defaulting buyers.
Concerns and Suggestions
CREDAI's state wing expressed concern over the provision that could treat builders as criminals if they fail to deliver projects on time. The apex confederation of builders argued that there are numerous instances where delays are beyond the control of the builders. In such cases, it would be unjust to treat builders as criminals. CREDAI-Odisha chief Mr. D S Tripathy proposed that monetary penalties should be introduced instead of jail sentences in these situations.
Mr. Tripathy further stated that criminal liability should be determined based on intentional delay and fraudulent actions by the builders.
Balancing Protection and Burden
While the real estate regulatory bill aims to protect buyers from unscrupulous builders, it may also become an additional burden for builders. Developers fear that the provision to impose criminal penalties on builders is unfair, given that delays are sometimes beyond their control.