Sulekha.com
The real estate bill has perhaps been the most debated topics of the year. The attention that this piece of legislation has garnered has been tremendous. This could be due to the fact that the bill encompasses the interests of a large section of the populace.
It is also because of the fact that this is the probably the most definitive legislation on the sector yet. Now that the bill has been passed it is necessary to understand the pros and cons of the bill in present form as it soon becomes a law.
There has been as much criticism against the bill as has been the praise in support of the bill. Many see it as a ploy by the Government to initiate such an important statute in the fag end of their term or in other words just before the general elections.
However, despite that line of thought a large part of the population is still thankful for the passage of the long-pending regulation.
Ever since the bill was announced suggestions and critiques started pouring in. When the law comes into force there are many changes and amendments to the act that could be expected after checking the practical applications of the bill.
The points in favour of the bill:
1. No more delays in delivery of projects:
The buyers can sit happily on their investments as the current bill seeks to totally eliminate the delays that one encounters after paying up for the house. There are very many cases where the builders usually fail to meet the deadlines in releasing the allotted homes to the buyers.
The bill will henceforth standardize such procedures and in case this practice continues, the buyer can claim back the full amount invested along with interest that will be applicable for that specific period of time.
2. Definitions are to be made clear:
The definitions of the actual carpet area, super built-up area, built-up area and some such terms must be clearly mentioned by the builders before the project is started. This could be done in pamphlets issued by them or any other advertisements that they carry out in public.
This is mainly to prevent the builders from misleading the innocent and the vulnerable part of the society.
3. Projects need to be cleared by appropriate authorities before going to floors!
The necessary clearances need to be obtained before any project is started. There have been instances when the builders engage in fund-raising for the project much before the starting date and the investors run the risk of losing their money if the project does not get through.
Also if the flats are completed before the green signal, then the occupancy of the house could be considered as illegal. This is one of the most significant points in the bill.
The downers:
Having seen some of the pros of the bill, the real drag may be due to the following points.
1. The current projects do not fall under the purview of the bill:
The real estate projects that are currently under-construction are not governed by this bill. Only those that are started from this time forth will be regulated under the act. This is actually a disappointing reality for those who have already put in their life’s savings in one project.
2. Red tape surrounding the green signal:
The investors and the developers alike are both sceptical of the delays that could be expected from the government’s side by way of authorization and approvals to be granted simply because of the aggregate number of projects that kickoff annually.
This could also end up hiking the costs by several notches by the time the project is completed. The number of new projects will also fall as a result of the hold-up in the approvals.
For a first regulation bill, the government has surely put in a lot of thought before finalising the final draft. That notwithstanding, there are still a lot more points to ponder over. These issues can definitely be rectified through vital amendments to the bill.
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