The Union Cabinet of India has now accepted the Real Estate (Regulation and Development) Bill, 2015. And this would hopefully bring some major changes in the bill once the amendments have been fully introduced. With the said changes real estate industry, the government hopes to create transparency and protection for consumers. This move would likely improve or strengthen the confidence of real estate buyers. In the same way, the said amendments if pushed through would also lead developers in delivering quality and timely projects.
However, such move is being opposed by some developers. Developers think that such move would only create or add up to the existing red tape within the industry. The Confederation of Real Estate Developers' Associations of India (CREDAI) expressed concern about the matter. Getamber Anand, president, CREDAI National (Noida), stated via indianexpress that;
"A new sword by the name real estate regulatory act is hanging over our heads. As an industry body we welcome the presence of a regulator, because it will ensure that people who are serious about the business will remain. But we are not too happy about some of the contents of the Bill."
With the possible introduction of the changes under the said Bill, regulatory bodies will be formed to oversee particular aspect of the real estate transaction. Most developers fear that the individuals assigned in a control board might be a political appointee. The group stated via indianexpress;
"The on-going projects should be kept outside the purview of the real estate regulator as and when he/she is appointed. To ask an on-going project to get registered with the regulator will mean hunting for old documents and certificates. This will hold up projects." Anand also added that, "there is one more serious issue. The clause dealing with the cancellation of registration of the real estate projects can be misused. People who wish to target builders and their projects, might use this clause to file false complaints against builders"
Though the Bill and its amendments presents a positive possible outcome, still it cannot be removed that political agendas might overcome the positive intention of the said amendments. "Reputed developers who have been following financial best practices and corporate governance have welcomed the move. At best, they may have differences of opinion as far as certain nuances are concerned," reported financialexpress.