Buyers seek more teeth in real estate bill
Around 300 representatives of various residents’ welfare associations (RWAs) here on Saturday demanded a stronger real estate bill and setting up of a regulatory body with sufficient power to take action against erring developers, reports Deevakar Anand.gurgaon Updated: Apr 30, 2013 01:02 IST
Around 300 representatives of various residents’ welfare associations (RWAs) here on Saturday demanded a stronger real estate bill and setting up of a regulatory body with sufficient power to take action against erring developers.
Stakeholders converged for a discussion on the Real Estate (Regulation and Development) bill 2011 organised by the Federation of Apartment Owners’ Association (FAOA).
The realty bill, which is yet to be tabled in the Parliament, proposes to set up a real estate regulatory authority in every state. Once the centres are set up, developers would have to submit all disclosures to the regulators concerned.
According to the proposed bill, developers will be able to advertise their projects only after declaration of their approved plans, timeline and other details.
“We are not trying to be a trade union or getting into a confrontation mode with developers, but we will certainly try to further our legitimate causes,” Gautam Gulati, senior vice-president, FAOA.
The discussion was to be attended by union minister of housing and urban poverty alleviation Ajay Maken. The minister, however, didn’t turn up.
The FAOA had recently made a representation over the draft bill to Maken. Some of the issues raised by them were transfer of maintenance and operations of condominiums, parking charges and stricter environmental adherence during the construction of flats. Sanjay Bhasin of Bellaire Flat Owners Association said homebuyers were being pushed to the wall by the builders “who indulge in illegal practices”.
According to the residents’ body, the new law would require compulsory registration for builders who are developing projects on more than 1,000 sqm of area. Failure to do so will invite imprisonment of up to three years or a fine of up to 10% of the total project cost.
The developer community, on the other hand, has been demanding an ‘industry’ status for the real estate business.
“The demography of homebuyers in India has changed. The young and educated service class is demanding more transparency in the deals with realtors. The industry here is presently going through a phase of professionalism,” said Yash Gupta, MD of realty major Hines India.
First Published: Apr 30, 2013 01:00 IST