Real estate developers and all the other stakeholders involved with the realty industry have given big thumbs up to the Union Cabinet decision to give a nod to the much-awaited Real Estate (Regulation and Development) Bill, 2013 at a meeting on Tuesday.
The following are some of the reactions received by Realty & More:
Sachin Sandhir, Global MD, Emerging Business, RICS, said, “It is a significant move by the Government to include provisions to protect buyers, including an additional window to approach consumer courts for their grievances through Fast-track dispute resolution and Real Estate Appellate Tribunal.” However, Sandhir said, “With more transparency in the sector, we expect the pricing of new launches in the short term to go slightly up in anticipation of the notion that developers may have to bear additional cost to register projects with the real estate regulator, once approved by the Parliament.” But he clarified, “It is not necessarily true that cost to developers will go up because the regulator does not require the developers to seek an extra permit but inform/register their projects with all approvals to maintain proper records.”
Vineet Relia, MD, SARE Homes said “It is a welcome step and we appreciate the positive move taken by the Government. The proposed framework will not only protect consumer interests but also ensure fair practices and accountability on the part of industry players, thereby restoring the general public’s confidence in the real estate sector. Furthermore, the Bill will boost transparency and accountability in buying or investing transactions in housing projects and enhance the sector’s credibility, in turn enabling the sector to access capital from the financial markets for its long-term growth. Nevertheless, it would have been in the fitness of things if the sanctioning authorities had also been made a party to the provisions of the Regulator in order to ensure adherence to timelines on approvals and infrastructure issues.”
According to Kumar Bharat, Director, BCC Infrastructures Pvt. Ltd.“The Real Estate Regulation bill is a positive initiative towards turning business environment ethical and transparent. This will provide a uniform regulatory environment to every member of the sector. The Bill aims at restoring confidence of the buyers and encouraging accountability. The supply bottlenecks in housing and support services across the country can be resolved through permitting higher density developments by increasing floor space index norms, releasing land parcels for development on a sustained basis and encouraging private participation in land aggregation.
According to Manoj Gaur, MD Gaursons India Ltd. & President CREDAI Western UP “We welcome the nod on the Real Estate bill from the cabinet as it will send out the positive signs. This bill will help in keeping a check on the developers who are indulge in the malpractices which is effecting the image of the sector among the buyers and investors as well. It would have been much appreciated if the Real Estate Regulatory Authority was granted limited controlling authority. However, we will propose our inputs to the government which can be added in the bill to make it more effective from the buyers and developers point of view.”
According to Om Chaudhry, Chairman, Astrum Homes “The Union Cabinet’s approval of the Real Estate Development and Regulation Bill is a positive step for the real estate sector. Enactment of the Bill will go a long way in bringing in ethical and transparent business practices to the industry and in the process make the industry more attractive for domestic as well as foreign investors.
Sanjeev Varshney, MD, Prop Leverage, said “It is a welcome step from the Government side as this bill also focuses on plugging in of malpractices prevailing in the sector from the developers and real estate consultants. Suggested formation Real Estate Regulatory Authority will build a trust between the real estate consultants and the buyers; along with keep a check on the transactions. This would help in building a positive image of the sector among the target audience”.
According to Sanjay Rastogi, Director, Saviour Builders “Welcome step taken by NDA lead union cabinet, the bill contains provisions of registration of real estate projects and registration of real estate agents with the Real Estate Regulatory Authority will bring transparency in sector. Amendments for ongoing projects that have not received Completion Certificates have also been brought under the purview of the Bill will boost the sector”.
Mohit Goel, CEO, Omaxe Ltd, said “While we welcome the real estate bill cleared by the Union Cabinet, certain provisions that the sector had asked for amendment remains unattended. We would have preferred escrow limit to be fixed on city basis (metro/tier II) or project basis (luxury/affordable); instead of a blanket 50 percent. Also, bringing ongoing projects under its ambit at this moment would further delay delivery of a vast number of projects (at various stages of construction) in the country. We also believe developers should be allowed to change design and structure post approval of 50 percent of consumers since a lot of difficulty arise when a developer begins construction. Lastly, and most importantly, the bill doesn’t fix accountable equally on all stakeholders. While builders face the brunt for project delay; accountability has not been fixed for delays due to regulatory approvals and customers default on payments etc.
According to Anubhav Jain, Director, Group Silverglades “The Government at the Centre finally passing the Real Estate (Regulation and Development) Bill, the real estate industry might finally expose the builders with bad intent and prove to be a boon for the buyers. The need to have a detailed regulation and a strong regulator for a disciplined growth of the real estate sector cannot be overstated. The Real Estate Bill, after including the latest changes, is fairly comprehensive and, if implemented strictly, it will pave the way for real growth of the sector. The amendment to include commercial sector also under the purview of the bill is welcome as both business as well as individuals these days invest in commercial property. Besides, large amount of money flowing from banks to commercial properties also needs protection.
Prashant Solomon, MD, Chintels India and Member, Governing Council, CREDAI NCR said “While the establishment of a real estate regulator is a positive step in increasing transparency and credibility of builders while protecting the consumers, it will only be valuable if and only if government authorities are also legally bound to grant approvals within a specified time period.
According to Anil Mithas, CMD, Unnati Fortune Group, “Cabinet’s nod to the Real Estate Regulatory Bill is a yet another positive step towards the Indian Government’s mission of providing ‘Housing for All by 2020’. We believe the setting up of Real Estate Regulatory Authority will not only empower the buyers and keep a check on the transactions but support developers in timely delivery of their projects in order to make the sector more organized. The systematic approach will further boost the confidence of foreign investors in the Indian real estate industry and help attract the FDI to resolve the long-existing cash crunch issues.”
“With real estate regulatory bill getting tough teeth, the industry has the benefit of an apex body via which all concerns can be addressed transparently and efficiently. It’s the biggest thing for the sector as it will provide protection to home buyers and it will also result into some non-credible players exiting the sector because of the checks and balances that will come in place,” he added.
Rohit Raj Modi, President, CREDAINCR said “We welcome the passing of the Real Estate (Regulation and Development) Bill as it will reduce the number of ‘one –time developers’ operating in the industry. It will bring in transparency and accountability in real estate and housing transactions, which will infuse long term trust in the sector. We expect that the bill will promote orderly growth through consequent efficient project execution, professionalism and standardization as well as give customers the confidence to commit to buying new homes, with the comfort that their largest investment decision is now protected by a regulator. As an apex body we look forward that the bill should bring in more investors, both from individuals and institutions, as it assures protection as well as overall regulation.”
The Bill will enable the sector to access capital and financial markets essential for its long term growth. A much needed impetus, as the sector is reeling under tax regimes, multiple, numerous approval and clearances. Overall, the bill will create a transparency level and will make developers more answerable on multiple levels.”
Mahipal Singh Raghav, CMD, MMR Group says “The changes made in the new bill will work wonders for the proper functioning and smooth operation of realty sector. But still there is scope of improvements in the bill. Since, it is a customer-oriented bill; buying sentiments will definitely improve. Delays in delivery can be controlled a lot if our government starts a single window clearance which will save lot of time for the developers, so that project commencement and delivery is on time, which will help in justifying the amendments”.
Arvinder Singh, MD, Agrante Realty Ltd. says “Real Estate sector is still unregulated and unorganized to a large extent. It’s a good announcement that a regulatory authority is to be established. It would bring a tight-hold on the realty sector and ensure the business transactions are transparent and working is under proper Governance of the Real Estate Regularity Authority, which would help protect the consumer interest and enhance the demand and buying sentiments in near future”.
Ashok Gupta, CMD, Ajnara India Ltd. believes “Amendments to the Real Estate Bill is a good move in the interest of consumers. It will bring more transparency in real estate sector and will make it more legitimate in nature. Now the Government must look into faster clearances of mandatory documents so as to help in timely construction and delivery of projects to avoid being penalized as per the new changes”.
Kushagr Ansal, Director, Ansal Housing says “This is one of the major news for the sector and will help the customers in a big manner. The government has a plan to provide Housing for all; which would meet several hurdles if strict scrutiny will not be present. A regulator sitting in the middle will make sure transparency is achieved and consumer grievances are effectively handled. This will in turn help in forming a pool of positive sentiments thereby helping in boosting the demand for this sector”.
Deepak Kapoor, Director, GulshanHomz says “Real estate sector is one of the fastest and most demanding sectors in India today with major contribution to GDP and employment generation. Thus, this bill will help in shielding the buyer’s interest and will fill in the loopholes existing in the sector. The Government must now focus on making the documentation and approval process easier for the developers so that timely delivery can be attained”.
Rupesh Gupta, Director, JM Housing says “It was a major requirement to get this sector regulated in a proper manner so that every other industry/sector associated with real estate sector is benefitted and everything is well organized. It’s a good announcement that customers are given the priority and provisions are made to safeguard their interests. This bill was in pipeline for quite some time and finally Government is taking action for it”.
Pradeep Aggarwal, Chairman, Signature Global, said “Revisions in the bill are justifying the current scenario of real estate sector. There are shortcomings which need to be addressed wisely. Instituting authorities for regulating the sector and introducing provisions in the interest of buyers will really be helpful in holding the customers interest in realty market. Developers also got much needed relief for the reason that now they have to deposit just 50 percent of buyer’s payment in escrow account which was earlier supposed to be 70 percent by UPA”.