In this blogpost, komal rastogi, student, nirma university, ahamadabad, writes about the advantages and disadvantages of the real estate regulatory and development bill, 2016. At present, the absence of a regulatory framework, lack of transparency and delays in obtaining numerous approvals are some of the issues hurting the sector. The act establishes real estate regulatory authority rera in each state for regulation of the real estate sector and also acts as an adjudicating body for. The union cabinet chaired by the prime minister, shri narendra modi, today gave its approval to amendments to the real estate regulation and development bill, 20 pending in the rajya sabha, and approved amendments proposed in the bill. The real estate regulation and development billthe first. In a statement the government said the bill will provide uniform regulatory environment to ensure speedy adjudication of disputes and orderly growth of the real estate sector. The union cabinet approved of the draft real estate regulation and development bill 20 and it shall now be codified into an act. The real estate bill was passed by the rajya sabha on 10th march, 2016 and the lok sabha on 15th march, 2016. Contents summary content page 1 real estate regulation and development act 2016 and related rules icsi bengaluru chapter march 25, 2017 presented by. An act to establish the real estate regulatory authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or. The recommendations of the standing committee of parliament on urban development and suggestions.
The first draft of real estate regulation and development bill has come 5 year ago and now the union cabinet of ministry has passed much awaited real estate regulation and development bill on 4th june, 20. After much delay and deliberation the real estate regulation and development bill, 20 bill has been approved by the union cabinet on june 4, 20, though this bill is yet to be approved by parliament i. Provisions of the real estate regulation and development act, 2016 object of the act. Mar 10, 2016 real estate regulation and development act 2016 and functions of real estate regulatory authority duration. Apr 09, 2018 the real estate regulation and development bill 20, was initially drafted and approved by the then upa the united progressive alliance cabinet in 20. While this sector has grown significantly in recent years, it has been largely unregulated, with. The bill as passed by the parliament was assented to by the honble president on 25th march, 2016. Real estate act important dates and timelines the real estate regulation and development bill was passed by the rajya sabha on 10th march, 2016 and by the lok sabha on 15th march, 2016 the bill as passed by the parliament was assented to by the honblepresident on 25th march, 2016 the real estate regulation and development act, 2016 was.
Regulation and development bill, 20 prslegislative. Real estate regulation and developement act rera and. Shri narendra modi, today gave its approval to amendments to the real estate regulation and development bill, 20 pending in the rajya sabha, and approved. Indias cabinet has cleared a muchdelayed real estate regulation bill that is expected to help consumers move towards an. Official code 2508 regarding the applicability of any law. Mar 25, 2017 real estate regulation and developement act rera and related rules sandeep jhunjhunwala 1. The act establishes real estate regulatory authority rera in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution. Real estate regulation and development bill, 2015 consented. Government perceive that the real estate regulatory and development bill, 20 as introduced in rajya sabha in august 20 is towards protecting. Apr 08, 2015 the union cabinet chaired by the prime minister, shri narendra modi, today gave its approval to amendments to the real estate regulation and development bill, 20 pending in the rajya sabha, and approved amendments proposed in the bill.
The bill regulates transactions between buyers and promoters of residential real estate projects. Real estate regulation and development bill, 2016 youtube. Prior registration of real estate project with real estate regulatory authority. It establishes state level regulatory authorities called real estate. Bill to establish the real estate regulatory authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, in an efficient and transparent manner and to protect the interest of consumers in. The bill as passed by the parliament was assented to by the. Aug 20 real estate bill,20 introduced in rajya sabha sep 20. Under the act, states had to notify the realty rules and set up. Real estate regulation and development act, 2016 frequently asked questions faq 1 status.
The real estate regulation and development bill, 20 was introduced in the rajya sabha on august. Parliament of india select committee on the real estate regulation and development bill, 20 invites suggestions on bill the real estate regulation and development bill, 20 has been referred to a select committee of the rajya sabha for examination and report. India faces a severe housing shortage and on the other hand, buyers are put off by skyhigh real estate prices and the unscrupulous practices of many developers. The real estate regulation and development bill, 20, as approved by the union cabinet in its meeting on 4th june 20, was introduced. The real estate regulation and development bill, 20, as introduced in the rajya sabha, was referred to the select committee comprising. Real estate regulation and development bill good news for property buyers. By accommodation times news services the union cabinet chaired by the prime minister, shri narendra modi, gave its approval to amendments to the real estate regulation and development bill, 20 pending in the rajya sabha, and approved amendments proposed in the bill. Provisions of real estate regulation and development bill, 2015.
Union ministry of housing and urban poverty alleviation hupa notified 69 of the total 92 sections of the act to bring it into force from 1 may 2016. The real estate regulation and development act, 2016. After considering the impact of amendment by finance bill 20 in respect to service tax for real estate sector now let us throw light on the effect of changes made in vat in. After a lot of opposition, deliberation and several amendments, the rajya sabha has, on 10 march 2016, approved the real estate regulation and. The new real estate act, rera empowers all stakeholders in real estate sector, such as consumers, developers, brokersintermediaries and more by bringing muchneeded transparency and accountability to place greater emphasis on planning and impleme. The bill was adopted on first and second readings on jan.
It come into force from 1st may, 2016 with 69 of 92 section notified, by notification in the official gazette, appoint. The purpose of this bill is to regulate the otherwise unregulated real estate sector which is one of the largest sectors in india and has been requiring regulation from the government for a long time. Formation of real estate regulatory authority under the act mandatory registration of builders with the authority only after acquisition of land for the. The 20 bill summaries are reports created by committee staff that give brief explanations of legislation that passed this session in both the house and senate. It establishes state level regulatory authorities called real. The real estate regulation and development bill is a pioneering initiative to protect the interest of consumers, to promote fair play in real estate transactions and to ensure timely execution of projects. It is expected to protect not only the interests of consumers but also those of developers. The union cabinet chaired by the prime minister, shri narendra. All about real estate regulation and development act, 2016. Registration real estate projects and real estate agents must be registered with the authority. The real estate bill regulates transactions between buyers and promoters of residential real estate projects.
Sources of funds to the cashstarved sector have recently witnessed innovation with introduction of structured products through cmbs. It extends to the whole of india except the state of jammu and kashmir. Creation of regulator establishment of real estate regulatory authority rera in statesuts to regulate real estate transactions. The real estate bill 20, first and foremost ensured the formation of real. The real estate regulation and development bill, 20. In a bid to create more consumer friendly, transparent and accountable real estate sector, union cabinet has approved the real estate regulation and development bill, 2015 which is applicable both for commercial and residential real estate projects the bill is an initiative to protect the interest of consumers, promote fair play in real estate transactions and to ensure timely. The real estate regulation and development bill, 2015 will create statelevel regulatory authorities to whom buyers can complain. Real estate regulation and development bill, 20 introduced in.
The authorities will be empowered to punish or prosecute developers. Salient features of the real estate regulation and. The real estate regulation and development act, 2016 act received the assent of the president on the 25th march, 2016. An assignment under the real estate development marketing act is a transfer of some or all of the rights, obligations and benefits under a purchase agreement made in respect of a strata lot in a development property, whether the transfer is made by the purchaser under the purchase agreement to another person or is a subsequent transfer. Find about real estate regulation and development bill 2015. Amendments to the real estate regulation and development bill, 20. The real estate regulation and development bill, 20 prs legislative research june 10, 2014 4 inconsistencies with state laws regulating real estate the bill provides that states can continue to apply their laws regulating real estate, to the extent. The bill has been designed to regulate and ensure the planned development of the real estate sector and improve the efficiency and transparency in real estate and housing transactions. Real estateregulation and development bill 2011 introduction. The real estate sector is headed for greater transparency, and accountability after the introduction of real estate regulation and development act, 2016 rera and various other regulatory and policy initiatives. This bill has been lying in parliament and recommendations suggestions were sought to make it. The real estate commission and the department of consumer and regulatory affairs offer this. The pros and cons of the real estate regulation bill india.
Cac constituted under the provisions of real estate regulation and development act, 2016, puri discussed the impact of the pandemic covid19 and consequent nationwide lockdown on the real estate sector and to treat it as an. Real estate regulation and development act 2016 and functions of real estate regulatory authority duration. The real estate commission or the director of the department of consumer and regulatory affairs may, upon proper application by any interested person, issue a declaratory order pursuant to d. The real estate regulation and development bill, 20 the real estate regulation and development bill, 20 was introduced in the rajya sabha by the minister of housing and urban poverty alleviation on august 14, 20. Real estate regulation and development bill highlights. What is rera the real estate regulation act in brief. The next step is to table it in parliament this monsoon season. Licensure temporary act of 2006, was introduced in council and assigned bill no. The pros and cons of the real estate regulation bill the good news. The standing committee on urban development chairperson. The real estate regulation and development bill 20, was initially drafted and approved by the then upa the united progressive alliance cabinet in 20.
Jun 01, 2017 the new real estate act, rera empowers all stakeholders in real estate sector, such as consumers, developers, brokersintermediaries and more by bringing muchneeded transparency and accountability to place greater emphasis on planning and impleme. Apr 08, 2015 by accommodation times news services the union cabinet chaired by the prime minister, shri narendra modi, gave its approval to amendments to the real estate regulation and development bill, 20 pending in the rajya sabha, and approved amendments proposed in the bill. An act to establish the real estate regulatory authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and. Bill to establish the real estate regulatory authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector. Real estate regulation and development bill, 20 youtube. Real estate regulation and development bill good news. The bill passed by parliament was assented to by the president on 25th march, 2016. The cabinet nod for the proposed real estate regulation and development bill, which was pending since 2007, is a welcome move. Aug 07, 2014 the real estate bill regulates transactions between buyers and promoters of residential real estate projects. The real estate regulation and development act, 2016 is an act of the parliament of india which seeks to protect homebuyers as well as help boost investments in the real estate industry. Real estate regulation and development act, 2016 rera 3 real estate sector plays a catalytic role in fulfilling the needs and demand for housing and infrastructure in the country and is an important pillar of the economy. These summaries are created by committee staff and do not represent the opinion of any senator, senate officer, or senate office. Housing minister says special advisory to save homebuyers, realty stakeholders interest soon 29 apr, 2020, 03.
Amendments to the real estate regulation and development. The bill seeks to establish real estate regulatory authorities reras at the state level for the regulation. Real estate regulation and development act, 2016 citehr. The national conference of ministers of housing, urban development and municipal affairs proposed a law for real estate sector.
The real estate regulation and development act, 2016 was passed by the rajya sabha on 10 th march, 2016 and by the lok sabha on 15 th march, 2016. Pm approves amendments in the real estate regulation and. The real estate regulation and development bill, 20 credai. Real estate regulation and development act, 2016 rera. The real estate regulation and development bill 2011 bill has received clearance from the union cabinet.
This bill had been introduced mainly to reach the objective of government of india to provide housing for all by 2022. The bill will now be taken up for consideration and passing by the parliament. Read more about amendments to the real estate regulation and development bill, 20 on business standard. The real estate regulation and development billthe. Real estate regulation and development bill good news for. The real estate regulation and development bill, 20 a. Find about real estate regulation and development bill. Real estate regulation and development bill ara law. What is possible impact of new real estate regulation bill. The core aim of the real estate regulation and development bill, 20. Real estate regulation and development bill 201120. Summary of amendment in real estate regulation and.
Real estate regulation and development act2016 background. Xlvi of 20 the real estate regulation, development and facilitation bill, 20 a bill to establish the real estate regulatory authority for regulation, promotion and facilitation of the real estate sector and to ensure sale of apartment or building, as the case may be, in an. Mar 18, 2016 after a lot of opposition, deliberation and several amendments, the rajya sabha has, on 10 march 2016, approved the real estate regulation and. The real estate sector has some other issues such as a lengthy process for project approvals, lack of clear land titles, and prevalence of black money. The landmark legislation real estate regulation and development act, 2016 rera, marking the beginning of a new era in the indian real estate sector and a step towards reforming the real estate sector in india, encouraging greater transparency, citizen centricity, accountability and financial discipline.
The real estate regulation and development act, 2016 came into force on may 01, 2016. Real estate regulatory authority rera bill was passed on 20 by indian national congress and got approved in march 2016 for states and union territories. Confederation of indian industry cii has always favoured setting of an institutional mechanism to improve the image of this crucial sector for indian economy and setting up of a regulator is a step in the right. This bill has been lying in parliament and recommendations suggestions were sought to make it better and exhaustive. The real estate regulation and development bill, 20 a bill to establish the real estate regulatory authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, in an efficient and transparent manner and to protect the interest of consumers in the. Sharad yadav submitted its report on february, 2014.