The much-debated Real Estate (Regulation and Development) Bill, 2015 that aims to protect the interests of buyers and bring transparency in the realty sector has finally been passed by Rajya Sabha. If implemented in the right spirit, it will improve the confidence of homebuyers who have faced problems related to project delays for long. It will also facilitate greater volumes of domestic as well as overseas investments in the sector and introduce standard business practices.
Homebuyers are overjoyed and hope that regulators are set up in every state. “We have buyers from across the country associated with our movement. Our efforts will now be directed at ensuring that it is implemented in every state,” says Abhishek Kumar, president of Noida Extension Flat Owners Welfare Association (NEFOWA) and core member for RERA movement.
It is the homebuyers who compelled the government to pass the bill, says S K Pal, Supreme Court lawyer, adding that unless each state sets up a regulator, this will not have much teeth. New homebuyers will now get what they have been promised and what they have paid for as every project will now be registered by the builder with the regulator with all the details. Builders, too, will be required to bring in fiscal discipline and propagate a culture of looking at each project independently and not float too many projects.
To make it successful, the government needs to ensure that the proposed regulator does not become another approval hurdle for developers. The government must expand the scope of the regulator to include other realty stakeholders, especially the regulatory bodies, says Neeraj Bansal, head, real estate and construction sector, KPMG in India.
It is by far the most decisive step the sector has taken towards transparency and reaching towards the kind of standardised processes and accountability guidelines that the industry requires to progress, says Anuj Puri, chairman and country head, JLL India.