Real Es­tate In­dus­try Cheers over Real Es­tate Bill passed

Accommodation Times - - Newslines -

1 Mr. Vikas Oberoi, Chair­man & Man­ag­ing Di­rec­tor, Oberoi Realty Limited said, “We are very pleased that Real Es­tate Bill was fi­nally passed by the Ra­jya Sabha. When the Bill will be­come an Act, it will en­sure more trans­parency in realty deals and help pro­tect the rights of the buy­ers. This will boost buyer con­fi­dence and in turn will also help in­crease sales. This bill also looks at the de­vel­oper’s in­ter­est by tak­ing into con­sid­er­a­tion ex­ter­nal fac­tors in case of project de­lays. This Real Es­tate Reg­u­la­tor will look at all stake hold­ers – the buy­ers, devel­op­ers and the au­thor­i­ties. We hope all the states will start adopt­ing this act with­out any fur­ther de­lay so that the hous­ing in­dus­try wit­nesses uni­for­mity across the country to en­sure that our Prime Min­is­ter’s goal of Hous­ing for All by 2022 is achieved.” Ms. Neha Hi­ranan­dani, Di­rec­tor, House

of Hi­ranan­dani,“We wel­come the pas­sage of the Real Es­tate (Reg­u­la­tion and De­vel­op­ment) Bill in Ra­jya Sabha that aims to bring in trans­parency and pro­tect the in­ter­est of the con­sumers. Though the ob­jec­tives are no­ble and cor­rect in the long term, we be­lieve lack of clar­ity on the var­i­ous mech­a­nisms pro­posed will only add to costs through de­lay, mak­ing projects not only more ex­pen­sive, but en­sur­ing that af­ford­abil­ity con­tin­ues to be a dis­tant dream. On the pos­i­tives, the bill does jus­tice to its prime cause of pro­tect­ing the in­ter­est of the con­sumers through set­ting up of reg­u­la­tory au­thor­i­ties in each state, manda­tory reg­is­tra­tion of all real es­tate projects, pro­vid­ing ad­di­tional av­enues for grievances.” Mr. Rajesh Pra­jap­ati, Man­ag­ing Di­rec­tor

Pra­jap­ati Con­struc­tions, “We wel­come the pas­sage of this bill. This will make the real es­tate in­dus­try more or­ga­nized and ma­ture. It will bring trans­parency to the sec­tor and the pas­sage of this bill will mean that the re­puted long term play­ers will be greatly ben­e­fited along with cus­tomers. Time­lines will be more closely ad­hered to and also the qual­ity of con­struc­tion in projects will in­crease. The only worry is about the in­clu­sion of un­der con­struc­tion projects as it will mean a lot of dif­fi­culty for the devel­op­ers. There­fore, only new projects should come in the am­bit of this bill. Also, a def­i­nite time frame for ap­proval of projects needs to be built in, maybe at a later stage if not now. Most im­por­tantly the buyer will now have a peace of mind as he/she will know the project va­lid­ity and also get com­plete authen­tic in­for­ma­tion about the same.” Mr. J C Sharma, Vice Chair­man & MD, Sobha Limited, “We wel­come the pas­sage of the Real Es­tate Reg­u­la­tory Bill by Ra­jya Sabha. This is a big step in the right di­rec­tion to­wards pro­tect­ing the consumer in­ter­est. It will help dis­tin­guish good real es­tate com­pa­nies that con­duct busi­ness by the book from those who have not. The pas­sage of the Bill will def­i­nitely en­hance the cred­i­bil­ity of the con­struc­tion in­dus­try as a whole by pro­mot­ing trans­parency, ac­count­abil­ity and ef­fi­ciency in ex­e­cu­tion of the projects. Ad­di­tion­ally, it will help put in place an ef­fec­tive reg­u­la­tory mech­a­nism for or­derly growth of the sec­tor. How­ever, the Bill made no men­tion of time-bound ap­provals by var­i­ous cen­tral, state and lo­cal agen­cies, which is crit­i­cal to the growth of the sec­tor. We be­lieve that the de­ci­sion to have up to 70 per­cent of the funds col­lected from con­sumers into an es­crow ac­count may not be the best way to make use of the col­lected funds, es­pe­cially at a time when liq­uid­ity in the sec­tor is not too good and the poor avail­abil­ity of bank fi­nance im­pacts the consumer as well.” Mr. Ro­hit Gera, MD, Gera De­velop

ments & VP, CREDAI, Pune Metro, “Pro­tec­tion of the real es­tate cus­tomer is an es­sen­tial need to­day given the lack of leg­is­la­tion and low bar­ri­ers to en­try in the in­dus­try. While the reg­u­la­tion is nec­es­sary, the pen­du­lum has swung to the other ex­treme in terms of be­ing puni­tive in many ways. The in­dus­try cur­rently passes off a large part of the risks to the cus­tomers to­day. With devel­op­ers be­ing forced to as­sume the risks cus­tomers will be far more se­cure than ever be­fore. Equal com­pen­sa­tion in case of de­lays, 5 year war­ranty on qual­ity of work, bet­ter cap­i­tal man­age­ment so as to en­sure bet­ter de­liv­ery are all much needed for bring­ing par­ity be­tween the buy­ers and devel­op­ers. All this will how­ever come at a cost as im­ple­ment­ing th­ese con­di­tions will lead to greater costs for the consumer. Cus­tomers must be ready to pay the price as they pass the risks over the devel­op­ers. We look for­ward to the im­ple­men­ta­tion of the Act at the ear­li­est.” Mr. Chin­tan Sheth - Di­rec­tor, Sheth Corp,

“We are glad that the Real Es­tate Bill has fi­nally been passed in the Ra­jya Sabha. The bill will boost the en­tire in­dus­try and will def­i­nitely prove to be a game changer for the mar­ket. The im­pact of this bill will be prof­itable to both con­sumers as well as builders as it will bring trans­parency in the in­dus­try and con­fi­dence amongst buy­ers. We wish the devel­op­ers’ in­ter­est is also taken care when buy­ers de­fault and de­lay pay­ment which re­sult in de­lays in project ex­e­cu­tion. Devel­op­ers can­not be blamed for such de­lays. The Act also has to take into ac­count the de­lays aris­ing out of clear­ing plans and per­mis­sions. Also, there was cou­ple of good an­nounce­ments in the re­cently con­cluded Bud­get, one be­ing the ex­emp­tion of DDT (Div­i­dend Dis­tri­bu­tion Tax) from REITs. Th­ese strate­gic moves from the Govern­ment have given a sig­nif­i­cant boost to the af­ford­able hous­ing seg­ment.”

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