The real water shed moment for the real estate sector came on
March 15, 2016, with the passing of the Real Estate (Regulation and
Development) Bill, ("Real Estate Bill")
by the Lok Sabha. The Real Estate Bill, now notified as the Real
Estate (Regulation and Development) Act, 2016 ("the
Real Estate Act") comes as a major relief to all home
buyers who are assured statutory protection against unnecessary
delays and other safeguards in project construction, thereby
reinstilling buyer confidence in the market.
Some of the key take aways from the Real Estate Act include,
establishment of a 'Real Estate Regulatory Authority' to
ensure implementation of a single window system to facilitate grant
of time bound project approvals and clearances for timely
completion of projects. In addition, the Real Estate Act mandates
deposition of 70% of the monies received by the promoter for a
particular project in a separate bank account, to be utilized
towards the construction and land cost for the project. This
requirement is intended to ensure that funds for a particular
project are not diverted to be used for other projects, and
projects are completed on time.
In order to set into motion the process for implementation of
the Real Estate Act, a few key provisions of the Real Estate Act
pertaining to the establishment and powers of the Real Estate
Regulatory Authority, Central Advisory Council and the Real Estate
Appellate Tribunal were brought into force with effect from May 01,
2016, along with miscellaneous clauses pertaining to overriding
effect, repeal, application of other laws, power to make
rules/regulations etc. The aforementioned streamlined approach of
the Government in notifying the provisions of the Real Estate Act
will ensure that authorities responsible for implementation of the
Real Estate Act, are functional prior to coming into force of the
operative provisions requiring compliance on part of the developers
and real estate agents.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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On March 10, 2015, the controversial amendments to the land acquisition law were finally passed by the Lok Sabha after facing severe criticism both from the opposition parties as well as from the government's own allies.
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