This refers to the passage of real estate bill in the Indian Parliament. The passage of the bill is a welcome step as opposition and ruling parties have always been at loggerheads on various issues and passage of many important bills were stalled.
The Real Estate (Regulation and Development) Bill, 2013, is designed to protect consumer interest, ensure efficiency in all property-related transactions, improve accountability of developers, boost transparency and attract more investments to the sector.
After the bill comes into effect, it will govern both commercial and residential projects and will lead to setting up of state-level real estate developing regulatory authority.
In order to safeguard the interests of investors who put their hard-earned money in real estate, one of the key aspects of this bill is that developers will have to deposit minimum 70 % of funds collected from investors that includes land cost into a separate escrow account to meet construction cost.
Real estate sector has contributed to construction boom, created job opportunities and has multiplier effect on growth of economy leading to huge demand of construction equipment, steel, cement etc. But unfortunately many unscrupulous builders simply used to disappear by selling flats without even starting or completing the project.
This bill will not only safeguard buyers from unscrupulous builders but also the banking sector. It will also benefit a large number of NRIs living in Saudi Arabia and other GCC countries. It will safeguard their interests and protect them from unscrupulous builders.
A welcome development
