The Real Estate Regulatory Bill passed in Rajya Sabha on Thursday will offer the much-needed protection to home buyers and help enhance transparency in the sector, feel industry experts.
Sanjay Dutt, managing director, India Cushman & Wakefield, said one of the significant aspects of the Bill was the definition of “carpet area”.
“Buyers will now be paying only for the carpet area and not the super built-up area, which was fraught with confusion earlier,” he added.
“Real estate companies which are illiquid will be in problem as 70 per cent of the money generated from buyers will be locked in escrow account. They will find the going tough,” Niranjan Hiranandani, CMD, Hiranandani Group said. “The setting up of the Real Estate Regulatory Authority will usher in the much-needed transparency and pave the way for implementation of standard practices across the sector. Even though some clauses are heavily stacked against the builders, we believe this Bill has the potential to transform our industry,” Rajeev Talwar, CEO, DLF ltd, said.
CREDAI has demanded that existing projects should not be brought under the new legislation. “Bringing ongoing projects under the legislation would mean stopping the work and ensuring the compliance of ongoing projects with the new legislation. This is not only time-consuming but also poses insurmountable difficulties in determining the nature and scope of regulation for ongoing project,” it said in a statement.