FICCI president Harshvardhan Neotia has hailed the passing of Real Estate Bill, 2016 in Rajya Sabha and said that it was a major step in enhancing the credibility of construction industry. He said that this bill would bringing in transparency and accountability in execution of projects.
Prime minister Narendra Modi said that bill was a "great news for home buyers". The bill, which seeks to regulate the property sector, bring in transparency and help protect consumer interests, is now slated to be taken up by the Lok Sabha.
The key features of the bill are: All projects will have to be registered with regulatory authorities, and developers will have to disclose project information including details of the promoter, project, layout plan, land status, status of approvals and agreements along with details of real estate agents, contractors, architects and structural engineers.
There will be no discrimination of any kind on basis of religion, region, caste, creed or sex and gender and we will include that in the rules. The government may bring in a "non-discriminatory" clause to allow anyone (including a transgender) to buy property in a complex. When some members raised the issue of discrimination in selling flats and plots to certain communities, Urban development minister M Venkaiah Naidu said the constitution provides equality for all.
Builders will have to deposit a minimum of 70% collections from buyers in an escrow account to cover cost of construction and land. State-level Real Estate Regulatory Authorities will be established to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover.
