The Union cabinet headed by Narendra Modi has approved amendments to Real Estate (Regulation and Development Bill), 2013. Key changes / inclusion introduced in the amendments are a) Residential and commercial projects under ambit of the new Real Estate Regulator that will come into force, hopefully and not like Jan Lokpal.
We believe Real Estate (Regulation and Development Bill), 2013 is a step in the right direction to address the end user concerns. The key feature of the bill is appointment of Appellate Authority which will adjudicate disputes between the industry participants with predefined timelines. In addition the transparency introduced at the time of registration with Authority (documents like commencement certificate, layout plan, agreement copy etc.) will help end user in taking an informed decision.
Ambit of regulation has been increased by bringing 1) Commercial projects and 2) projects which have not received completion certificate under the its jurisdiction. Previously projects which had received commencement certificate before the implementation of act were exempted from registration.
In original draft bill developer was required to compulsorily deposit 70% of amount realised from allottees in a separate account. The deposit amount has been reduced to 50% thus improving working capital flexibility as compared to draft bill. Another key amendment is the requirement of consent from 2/3rd allottees if the developer intends to alter plan or make structural changes.
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