Indian government has recently approved setting up of a regulator to protect home buyers and improve the credibility of the real estate sector with a Real Estate (Regulation and Development) bill to create a uniform regulatory mechanism across India. The bill seeks to ensure accountability and transparency to enable the real estate sector to access financial markets essential for its long-term growth. More disclosures are demanded from developers and there are penalties attached in cases of violations. As per official statements, Real Estate (Regulation and Development) legislation is expected to give a boost to the Housing for All mission by enabling increased flow of investments through enhanced transparency, accountability and standardization.
States also need to make rules within one year and put in place a web-based online system for submitting applications for registration of projects, and the regulator has to decide cases within 60 days. Real estate developers, both in the residential and commercial sectors, will be required to register their projects with the regulatory authority. Promoters will have to disclose all information regarding ownership, project plan and layout, development schedule, land status, status of statutory approvals, proforma agreements, names and addresses of real estate agents, contractors, architects, structural engineers and so on.
Real estate developers and agents can be punished for non-compliance of the orders of the regulatory authority and appellate tribunals to be set under the proposed law. Whether a great move for transparency and governance only time can prove, a bold initiative nonetheless.