Union Cabinet approves 20 major amendments to Real Estate Regulatory Bill

The Union Cabinet has approved 20 major amendments to the Real Estate Regulatory Bill that seeks to protect home buyers as well as help investments in the real estate industry grow. These changes were based on the recommendations of the select committee of Rajya Sabha that had examined the bill pending in the upper house of the parliament. 

The updated bill now mandates projects on 500 square metres of area or with eight flats to also be registered with the regulatory authority instead of 1,000 sq metres proposed earlier, bringing in a larger



number of projects under the regulator's ambit. The Bill also says Builders will now have to deposit at least 70% of the sale proceeds, including land cost, in a separate escrow account to meet construction cost.

The bill also provides for uniform regulatory environment to ensure speedy adjudication of disputes and orderly growth of the real estate sector. It will boost domestic and foreign investment in the Real Estate sector and help achieve the objective of Central Government to provide Housing for All by enhanced private participation.