Amendments to the Real Estate Bill will escalate costs: Expert

Jayarama Emani | The Dollar Business By giving approval to amendments to the Real Estate (Regulation and Development) Bill, 2013 pending in the Rajya Sabha, and approved amendments proposed in the Bill, the government is expecting to boost the domestic and foreign investment in the sector and achieve the objective of ‘Housing for All by 2022’, through enhanced private participation. However, C Shekar Reddy, the immediate past National President of The Confederation of Real Estate Developers Associations of India (CREDAI) feels that certain sections of the Bill neither help the builders nor the consumers leading to unwarranted cost escalation. Talking to The Dollar Business, Reddy said, “Certain provisions in the Bill like – establishment of one or more ‘Real Estate Regulatory Authority’ in each State; barring the promoter from altering plans, structural designs and specifications of the plot, refund with interest and compensation for default by the promoter will make the builders insecure and wary of the legality of the procedures and thereby will increase the cost of the product for end-user.” Reddy also added that the government must also realise that the builders too are customers of the government and unless the government provides proper infrastructure facilities not only on paper but also ensures smooth provisioning of the modalities involved, it will be very difficult for the industry to grow either domestically or attract foreign investments. Excessive regulation might also lead to red-tape, he opined. According to a PIB release, The Union Cabinet chaired by the Prime Minister, Narendra Modi, on Wednesday, gave its approval to amendments to the Real Estate (Regulation and Development) Bill, 2013 pending in the Rajya Sabha, and approved amendments proposed in the Bill. The recommendations of the Standing Committee of Parliament on Urban Development and suggestions of various stakeholders (consumer organizations, industry associations, academia, experts etc.) have also been included after extensive consultations. The Bill is expected to ensure greater accountability towards consumers, and to significantly reduce frauds and delays. The Bill is also expected to promote regulated and orderly growth through efficiency, professionalism and standardization. It seeks to ensure consumer protection, without adding another stage in the procedure for sanctions.  

This article was published on April 8, 2015.