Lok Sabha passes realty bill, norms stricter for builders

The bill comes with strict norms and punitive actions, including three years of jail terms for the erring promoters.

The much-awaited Real Estate (Regulations and Development) Bill finally got the Parliamentary nod on Tuesday, which seeks to make it tough for the builders and promoters to take buyers for a ride. The bill comes with strict norms and punitive actions, including three years of jail terms for the erring promoters, to regulate the construction sector.

The government also informed the Lok Sabha, which passed the Real Estate (Regulations and Development) Bill, that it would soon come up with a model rental law to promote rented premises. The Rajya Sabha had earlier passed the Real Estate (Regulation and Development) Bill. It seeks to protect consumer interest, ensure efficiency in all property-related transactions, improve accountability of developers, boost transparency and attract more investments to the sector.

Once the bill gets the assent of President Pranab Mukherjee, the law would provides for setting up of a Real Estate Regulatory Authorities (RERAs) which will ensure timely execution of projects. It will regulate transactions related to both residential and commercial projects. The bill provides for mandatory registration of all residential and commercial projects with the Regulator. All new and ongoing projects would come under the ambit of the regulator.

Also, appellate tribunals will now be required to adjudicate cases in 60 days as against the earlier provision of 90 days and Regulatory Authorities will have to dispose of complaints in 60 days.

The bill provides for imprisonment of up to three years in case of promoters and up to one year in case of real estate agents and buyers for any violation of orders of appellate tribunals or monetary penalties or both.

While replying to debate on the bill in the House, Union minister for urban development M. Venkaiah Naidu said the bill envisages, “What you are committing, what you are promising, please fulfill. What you are promising through advertisements, please fulfill that. That is the purpose of this bill.”

Mr Naidu informed the House that the government is trying to bring in a policy which would take into account the requirements of tenancy hassles in modern days, he added. “We are planning a National Urban Rental Housing Policy. In today’s date, the tenants are more in number. This policy will be for people who let out their house on rent,” he added.