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Real Estate Bill 2015 and the take away of the common consumers.

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Crux of the newly Cabinet approved Real Estate Bill 2015 and the take away of the common consumers


In a bid to bring more transparency and more accountability in the sector of the real estate the government brought the new real estate regulatory bill which was much criticized. After that the bill went through different revisions as well as additions and alterations. Finally, the Real estate regulatory Bill was passed by the cabinet yet awaiting the nod or the approval of the parliament.  The government proclaims that the objective of the bill is to imbibe new confidence into the buyers and bring stability in the realty market. This is exactly where it wins the heart of the public and the general consumers. No one can deny the fact that a house or an apartment is one’s lifetime affair and one buys it with one’s whole life’s savings. Here the state needs to see that there are enough fair regulations to ensure that no amount of deception happens and the commoners are not harassed and troubled by the developers and the builders. In that light let us discuss the good points that it brings home for the common consumers.
ü  The new Real Estate Regulatory Bill is equally applicable for both residential and the commercial projects. It is also enforceable for the existing as well as the projects whose sales are going on as well.
ü  The Bill brings the legislation for establishing a “Real Estate Regulatory Authority” in all the Indian states and Union Territories which tends to regulate the transactions of the real estate sector.
ü  The developers will have to mandatorily disclose the key details of any project such as the plan of the layouts, approval status, land details, different agreements along with the details of the architects, engineers, contractors, agents and other such stake holders.
ü    Earlier the builders were asked to deposit half of the amount of the sale proceeds realized towards the bookings of the flats and apartments of the project in an escrow account opened for this purpose. This account should be in a commercial bank which has to be opened by the developer within 15 days of the receipt of the funds and the funds should be deployed for the said project. In the cabinet approval this limit has been increased to 70 percent from 50 percent in the previous proposal of the Bill.
ü  The Bill also brings the stipulation that the plans of the buildings or the apartments cannot be changed without the consent of the buyers.
ü  Any dispute has been set to be settled faster through the appellate tribunal or the adjudicating officers.
ü  For not abiding by the rulings of the appellate tribunal the developer and the buyer may be imprisoned up to a term of three and one year respectively.

ü  In case of the delay of the project both the buyer as well as the developer has to bear the burden of the interest accrued thereupon.

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