Registration of real estate agents and projects will be mandatory.
Real Estate Authority and Appellate Tribunal will be established in States.
Chhattisgarh is the only State which opposed the Bill.
Terming the Real Estate (Regulation and Development) Bill 2013 a landmark legislation aimed at protecting the interests of home buyers, Housing and Urban Poverty Alleviation Minister, Ajay Maken said the Bill proposed to register real estate agents, who have been unregulated , which will eventually lead to tracing of money trail and curbing money laundering.
Addressing a press conference here , Mr. Maken said the decision to include this clause on tracing money trail and check money laundering was done on the recommendations of the Finance Ministry.
“The Bill aims to ensure consumer protection, by making it mandatory for promoters to register all projects, prior to sale and only after having received all approvals from development/municipal authorities thereby protecting buyer investments. It will promote transparency and fair and ethical business transactions, through disclosure of project details and contractual obligations vis-à-vis the project and the buyer, promoting informed choice for the buyers thereby substantially reducing the power asymmetry prevalent in real estate transactions.’’
Mr. Maken said wide consultations with all States held during the drafting of the Bill and 22 States, including the BJP-ruled Gujarat and Madhya Pradesh, favoured the proposed legislation. Chhattisgarh was the only State which had opposed the Bill, he added.
The Minister said a Real Estate Authority and Appellate Tribunal would be established in States to enforce accountability norms for the promoter buyer and real estate agents when the Bill gets the Parliament nod.
“The Bill provides for a uniform regulatory environment, to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real estate sector,’’ he added.
Presently, the real estate and housing sector is largely unregulated and opaque, with consumers unable to procure complete information, or enforce accountability against builders and developers.
‘To restore confidence’
“The aim of the Bill is to restore confidence of the public in the real estate sector which will enable the sector to access capital and financial markets essential for its long term growth,’’ he remarked.
The Bill contains provisions dealing with registration of real estate projects and registration of real estate agents with the Real Estate Regulatory Authority; functions and duties of promoters; functions and duties of real estate agents; rights and duties of allottees; establishment of Real Estate Regulatory Authority; establishment of Central Advisory Council; establishment of Real Estate Appellate Tribunal; offences and penalties; Finance, Accounts, Audits and Reports etc.