Both stakeholders – property purchasers and developers – are likely to benefit if the proposed Real Estate Regulatory Bill gets Parliamentary nod, says RAJIV DOGRA After almost two years when the first draft of the proposed Real Estate Regulatory Bill was introduced in Parliament in September 2009, it is likely to get the nod during the upcoming monsoon session. The bill is, essentially, supposed to pave the way for housing reforms in the country. Protecting interests of property purchasers and streamlining development clearance processes remain the two key objectives of the bill. According to Pranab Datta, Vice-Chairman and Managing Director, Knight Frank India, the real estate sector is humungous in size, thus it makes a huge impact on the GDP of the country. However, when compared to other developing countries, the regulations are way below standards and “connotations remain not very positive”, he adds. “A better governance is expected if there is a regulation standard,”he says. “Earlier, too, sectors like stock or insurance have done well once brought under (the ambit of) regulations. “Similarly, in the realty industry a positive outcome is expected provided the regulation is enforced with intent in letter and spirit.” The regulation of activities of property developers and builders in India remains a state subject and comes under the purview of the respective state governments, municipal and development authorities, under the provisions of State Town and Country Planning or City Development Authority Acts. This has, however, led to inconsistency with respect to rules and regulations being followed in governing, constructing, purchasing, transferring and leasing of properties across the country. The bill, therefore, aims to mend these inconsistencies and focus on the well-being of the property purchaser. “There has to be a synergy between the state and the government at Centre if it prescribes to implement the bill,” says Datta. “There would be moments when central funding will be required for certain projects, so it will be mandatory for states to confirm to certain legislations.” However, Kumar Gera, Chairman and Managing Director, Gera Developments, raises concerns, asking how a single regulator based out of Delhi can control things in every state. “Land is more of a state subject with different set of rules for every place,” he says. “The bill should essentially take into account various parameters for speedy clearance that are required in the marketing real estate sector successfully.” Additionally, the bill proposes to establish a regulatory authority, to control and promote the construction, sale, transfer and management of colonies, residential buildings, apartments and other properties. The regulatory authority shall consist of a chairperson and two members to be appointed by the government, from among those who have professional knowledge and experience in the field of public administration, urban development, finance, law, or management. The key function of the regulatory authority would be to ensure compliance of the obligations cast upon the property developers and property buyers/ investors under the regulation. “This would bring in some marginal level of comfort to buyers,” admits Gera. The authority would also maintain a website, with the records of all real estate projects with all details, as provided in the application for registration. The real estate regulator would have the important task of evolving a consensus among various stakeholders, such as central or state governments, the Bureau of Indian Standards (BIS), municipal bodies, developers, associations of engineers and architects, on various issues like structural safety, speedy grant of planning permissions, building approvals and licenses, rating of real estate projects and promoters, reliable land title certification system, speedy and transparent registration of properties, statutory framework for equitable and balanced relationship between landlord and tenants and to promote affordable housing. Besides this, the bill provides for the establishment of a real estate appellate tribunal to adjudicate any dispute and to hear and dispose appeals against any direction, decision or order of the regulatory authority. Besides this, the bill has outlined in detail, the role of the developer and its obligation towards the regulatory authority and buyers. The developer, under the bill, is obligated to make available for inspection all documents and information to prospective purchasers. The builder is obligated by the bill to enter into a written agreement of sale, with the prospective purchaser, before taking any advance or deposit. After the execution of the agreement of sale, the developer is not entitled to create a mortgage charge on the plot, building or apartment, without the prior written consent of the buyer of the same. In addition, the developer is expected to file all the details of the project with the regulatory authority and give details of every advertisement/ prospectus and the names of property dealers or middlemen dealing in the project. The proposed legislation, it is hoped, will lead to better information-sharing and decisionmaking, between developers and consumers. “The bill would certainly work like a catalyst,” says Prasad Deshpande, CEO, Pune Vastu. “It would bring in some amount of transparency in a sector that has many elements which a few builder lobbies try to take advantage of. The bill would certainly generate literacy among buyers about the realty sector. Interestingly, this would promote a mindset to look at the realty sector in a positive light.” In order to make the proposed act effective, penalties have been stated for those who fail to comply with or contravene its provisions. The new draft has provisions that protect buyers from flyby-night developers, misleading advertisements, mis-selling ofprojects and undue delay in project completion. However, Gera observes that it would be wrong to put the blame squarely on a developer. “It is true that due to a derailed or delayed project a customer suffers, however, there are many other factors too that come into play like role of service providers, local authorities, among others. In fact, for accountability to come in, all the stakeholders are obliged to play their roles sincerely.” Datta, meanwhile, observes that though the bill should outline the standards to be applied for the realty sector, it shouldn't become a mechanism of bureaucracy. “The unnecessary layering of decisions should be avoided. The bill should fulfill expectations of all stakeholders and should come up with a collaborative way to ensure growth in the realty sector,” he adds.
I’ve been a sports person, and also captained my throwball and volleyball teams. I understand the importance of extracurricular activities in our growing up years.
Trainings provide a child with the required discipline when working within teams as well as gives one the chance to follow what makes you happy. It also enables an overall development!
Dance has been my passion since I was a child and I have been thrilled to see both my little ones have this in their genes too.
This opportunity really came to my doorstep through Gera. My daughters Lavanya and Diya have had an enthralling experience being a part of not just one but three Academies (The Shiamak Davar Dan..
I cannot thank you enough for making our journey with Gera so so interesting and mind-blowing. I had never ever imagined my life taking a beautiful turn with me beginning to start my career as a music teacher that too with SMA (Shankar Mahadevan Academy) and all this has been possible only because of GERA and YOU my dear.
It is only because of your efforts and kind gesture that I could meet the man himself (Shankar Ji) and have a small recording session with him. That was like a dream come true.
I am super excited to start my journey with SMA and Gera as a teacher now.
Apart from that, Me and Prateek have always been grateful to you for making Shiamak happen for us and I ..
It was indeed a pleasure being a part of the Christmas celebrations at Astoria. Kudos to the Gera team for bringing in such a wonderful event with great carol singing participation from our own kids. It brought in the spirit of Christmas and the games, Santa, the gifts only added to it. Thanks for organising such a wonderful event which helped in community building...looking forward to many more such celebrations!..
The Christmas event organised at Astoria was a big success and a big step in bridging the gap between us and Gera. It was a memorable event as we are still in the beginning of our journey of life in our little home at Astoria. The kids have been the happiest of all and what more can we ask for when we see smiles on the faces of our little ones. Kudos to you and your team for making this event a huge success! Looking forward to many more in the years to come...
The Christmas party organised by Gera at Astoria this year was a great success with good participation from kids and parents. Our children Sia and Saish enjoyed the party to the fullest. Sia, in particular, had a gala time and reiterated her stand that Anita aunty's parties are THE BEST.... We as your customers take much pride in informing our friends that such goodwill gestures are one of the many differentiators Gera brings to us, which no other builder in Goa can boast of. Many thanks to you and your team for doing an excellent job in putting up this event. We look forward to the next one! A big thanks to the Gera Management for its efforts in community building...