The Union cabinet nod for the proposed Real Estate (Regulation and Development) Bill has been given a cautious welcome by activists in Pune who say it would help regulate the real estate sector. The absence of a regulator,they say,had given rise to malpractice.
Builders are not very sure of what it could hold for them and are apprehensive.
Activists have welcomed the proposed Real Estate Regulatory Authority (RERA),which they say would make it easy for consumers to address grievances of consumers in the real estate sector.
The bill states that every realtor has to register with RERA. For registration,the realtor has to declare,among other things,the legal title of the land,the land being free of all encumbrances and has to declare that the project shall be completed in accordance with terms and conditions of the registration.
Activists Vijay Kumbhar,welcoming the move,stated that in absence any regulatory mechanism,the realtor many a time openly flouted rules. Time and again,the government came up with regulations to make housing affordable,but they have failed to materialize. This was because of absence of a regulator, he said.
With the regulator in place,it would be easy for a consumer to complain about wrongdoing and seek justice, he said.
Hemant Naiknavre,president Pune-Credai said the state bill should be first approved and incorporated in the central bill when it is passed passed. The central bill has been drafted without really understanding the sector as a whole. We are still unclear what will come in the central bill, he said.
He says the central bill is mainly aimed at controlling many of the malpractice seen in North India which are absent in Maharashtra.
Rohit Gera,vice-president of Pune-Credai,welcomed the mechanism of protecting customers against fly-by-night operators. Asking for more state inclusion in the bill,Gera stated that blanket regulations might give rise to more problem than solve existing ones.