Real estate firms hail Cabinet nod for Bill

New Delhi, December 12, 2015:Developers and industry watchers have hailed the Cabinet approval for Real Estate (Regulation and Development) Bill, saying it would set the benchmarks in consumer rights protection.

However, they also pointed out that if speedy project approvals are not factored in, it could lead to project delays and even rise in costs.

The Union Cabinet had approved the Real Estate (Regulation and Development) Bill, 2015. The Bill will now be taken up for consideration and passage by Parliament.

Navin Raheja, Chairman, Naredco Advisory Council and Real Estate Committee, FICCI, said, “We wish the sanctioning authorities in the estate were included in the Real Estate Bill because without bringing them on board, delays would continue in the implementation of projects. And we wish the project escrow account should have been at a lower realistic level as per actuals.”

Vineet Relia, MD, SARE Homes, said: “The sector is currently going through a wait-and-watch phase. As a developer, we are hoping that the amendment would promote speedy approvals and execution of projects, bring about professionalism and accountability in real estate transactions.”

The Bill regulates both commercial and residential real estate projects. The Bill has also proposed setting up an escrow account to cover the construction cost of the project for timely completion of the project.

Sachin Sandhir, Global MD, Emerging Business, RICS, said, “It is a welcome move to amend certain aspects of the Bill which will benefit end users greatly, especially putting aside 70 per cent of the sale proceeds in an escrow account to meet the construction cost. If effectively monitored, this will lead to faster execution and delivery of the projects which is a critical challenge in the real estate sector in India.”

Corporate Comm India(CCI Newswire) .