Please find below mentioned quote given by Mr. Shubham Jain, Director JP Infra on Real Estate bill makes it through Rajya Sabha
The new real estate bill, cleared by the cabinet, is being hailed equally by the home buyers and developers alike as it will lead to consolidation of the industry and will pave way for growth for the industry in a well defined regulatory framework. The implementation of the provisions of the bill, if done efficiently, will boost confidence of the buyers, lenders and investor, which is crucial for long-term growth of the realty sector.
There are many provisions in the bill such as prior registration of projects and agents with the regulator, information transparency about booking and construction, launch of projects only post receipt of all approvals and the restriction on change in plans without consent of the buyers, escrowing are positive steps that could help buyers.
There is a likelihood that the number of project launches will come down temporarily and so will the supply and inventory as a result of immediate impact of the bill. However, new launches will largely depend on the financial capacity of the developers and the demand created as a result of the new provisions. The bill is also likely to create positive grounds for more joint venture projects with land owners in case of any shortfall in surplus cash availability. The provision in the draft bill to escrow a portion of the sales proceeds for construction purposes will ensure timely completion. “