The real estate, that had been in doldrums single long might finally be passed this during this winter session of Parliament. The bill which has undergone various amendments and scrutinizes ever since it was proposed is soon to be cleared. The real estate bill was introduced in 2013 by the then UPA government. By Feb 2014, Standing Committee had given its report. A few amendments were suggested to the bill to improve it and in December 2014, the Cabinet considered making the proposed amendments to the bill.
Finally, the government is gearing up to make way for passing the crucial real estate bill in the winter session of Parliament. All the amendments proposed by the Parliamentary committee have been accepted by The urban development ministry and the amended legislation will be moved for the Cabinet approval and then push through Parliament. Various real estate developers including Earth Infrastructure Ltd reviews this as the first step towards organizing the real estate domain in India.
The move from the ministry is a result of examination of Rajya Sabha Select committee’s report by an informal Group of ministers. The group decided on accepting the proposed amendments. A major amendment is the proposed parity in the interest payable by allottee and developer in case of any default by either party. Earth Infrastructure Ltd feels that it is necessary to safegyard the interests of consumers as well as developers.
The developers pay only 2-3% interest in case of default on their part but the consumer pays 16-18% interest for his default. The committee said in its report: “The interest rate payable by the promoters as well as by allottees shall be same in eventuality of any default by either of them.” The select committee not only reinforced the penalty provisions of up to three years’ imprisonment proposed by the government but also introduced imprisonment clause for a realtor failing to abide by the orders of the appellate tribunal
Many developer companies feel that Government agencies issuing permits should be brought under the law and made accountable for undue delays. An official spokesperson for Earth Infrastructures Ltd feels that to end speculation in property, the government must also do away with the artificial shortage of land, which is policy-induced. States should free more land for urban development. And absurd rules on usage must go.