With the amendments to the Real Estate (Regulation and Development) Bill, 2013, approved by the Cabinet, the industry believes that this will reduce the number of unprofessional builders operating in the industry.
While the Bill aims to protect home buyer interests and increase transparency in the sector, real estate developers feel that it needs modifications and should not be passed in its current form.
Supertech Chairman R K Arora said, “Most complaints on delayed completion/delivery are because of delay in getting clearances. There is no proposal in the Bill to address this situation.”
The proposed legislation should not be enforced retrospectively as it is impossible to comply with various rules and regulations for the under construction projects, Arora added.
Rohit Raj Modi, President, CREDAI NCR, said, “The Bill will reduce the number of ‘one-time developers’ operating in the industry. However, wilful default must be defined in the Bill in order to remove discretion and urban local bodies and development authorities should be brought under the ambit.”
Mohit Goel, CEO, Omaxe Ltd, added that certain provisions that the sector had asked for in the amendment remained unattended.
“We would have preferred escrow limit to be fixed on city basis or project basis (luxury/affordable), instead of a blanket 50 per cent. Developers should be allowed to change design and structure post approval of 50 per cent of consumers since a lot of difficulty arise when a developer begins construction,” Goel said.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said the Bill would have been more effective had all the approving authorities been brought under its purview.