Real estate bill passed in Parliament

The Real Estate Bill aimed at protecting home buyers got full nod of the Parliament, with the Lok Sabha on Tuesday approving the new law passed by the Rajya Sabha.

The bill regulates transactions between buyers and promoters of residential and commercial real estate projects. It establishes state-level regulatory authorities called Real Estate Regulatory Authorities (RERAs). Promoters will have to register all projects developed in 500 sq metre or above with the RERAs. 

With both the houses of Parliament clearing the bill, it will now be sent for the president’s assent after which it will become a law. The government will first notify sections of the bill which deal with setting up of the regulatory authority, which is to be created within one year.

Under the provisions of the bill, builders cannot advertise and sell homes till all approvals are in place and the project is registered with the regulatory authority that will be



set up in every state, alongside appellate tribunals for dispute resolution. At the time of the registration, the developer will have to disclose all project information, including details of promoter, project plans, implementation schedule, land status and layout plan.

After that other sections dealing with registration of real estate projects, real estate agents and functions and duties of promoters will be notified. Dismissing the apprehensions of developers that the bill will muzzle the real estate sector, Urban Development Minister M Venkaiah Naidu said the government will discuss with all the stakeholders before finalising rules.

The minister also said he would write to all the states to ensure that required clearances from the local administration for a real estate projects like building plan and fire safety, would be given within 30 days of submitting application by the developers to prevent delay of taking off the project.