NEW DELHI: The draft of the new central Real Estate Regulation Bill 2011 has been sent to the union law ministry for its comments and clearance, SK Singh, joint secretary in the ministry of housing and urban poverty alleviation said at a CII conference.
The original Model Real Estate bill has now been modified into the new Real Estate Regulation bill. The new bill excludes the subjects of land and colonisation, as they are both state subjects. It deals with consumer interest, fraud and cheating, contractual obligation. Once this bill is in place, all developers will have to register with the regulator and provide all details of their projects, include land and clearances, before they can advertise to the public. "Transparency is the purpose," said Mr Singh.
The original bill has been in the making for over three years now and it has seen about 8-9 modifications to date, based on close to 3,000 comments that the ministry got from the both consumers and developers. Since land and colonisation are state subjects, it was felt by the ministry that it should be converted into a central bill instead.
Pricing of real estate projects, though, will not be regulated by the government. "Pricing will be determined by market forces and supply and demand dynamics," said Mr Singh.
The bill, which has been drafted taking into account the interests of all stakeholders and real estate developers, would set the tone for reforms in the housing sector.
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