New Delhi: Hailing the Cabinet's approval of real estate regulatory bill, realtors' body NAREDCO Tuesday said the proposed law will bring transparency in the sector, while helping home buyers in redressal of their grievances.
The Cabinet Tuesday approved the Real Estate (Regulation and Development) Bill. It provides for setting up a regulator for the realty sector and having provisions like a jail term of up to three years for developers who make offences like putting up misleading advertisements about projects repeatedly.
"It is a welcome step. We had been waiting for the same since long as it would bring buyers at ease along with transparency and respect to the sector," National Real Estate Development Council (NAREDCO) President Naveen Raheja said in a statement.
The proposed law will protect the interest of all stakeholders and also help check unscrupulous players in the sector, he added.
"This now would help to establish a regulatory authority for enforcing fair practice and accountability norms and fast track dispute resolution mechanism in real estate transactions," Raheja said.
Commenting on the bill, global realty consultant CBRE South Asia Chairman & MD Anshuman Magazine said: "Real estate regulator bill should have been more balanced (while) taking view of challenges faced by developers and consumer grievances."
"While consumers need protection, for real estate development to happen more efficiently, and in a transparent manner, administrative reforms are required urgently," he added.
The bill intends to make it mandatory for developers to launch projects only after acquiring all statutory clearances from relevant authorities. It also seeks to make it mandatory for builders to clarify the carpet area of the flat.