New Real Estate Bill will curb fraud, money laundering: Ajay Maken
Minister of Housing and Poverty Alleviation, Ajay Maken says that the Real Estate (Regulation and Development) Bill 2013 is aimed at protecting the interests of home buyers. The Bill proposes to register the previously unregulated real estate agents which will eventually lead to tracing the money trail and curbing money laundering.
Reiterating Government's commitment to make real estate development transparent and consumer friendly, Maken said that real estate and housing construction has been largely the concern of state institutions till the 1980s with very few private promoters and a nascent industry.
"With the liberalisation of the economy, conscious encouragement was given to the growth of the private sector in construction, with a great deal of success, and the sector today is estimated to contribute substantially to the country's GDP. But currently the real estate and housing sector is largely unregulated and opaque, with consumers often unable to procure complete information, or enforce accountability against builders and developers in the absence of effective regulation," he added.
Maken hopes that the proposed legislation will ensure greater accountability towards consumers and significantly reduce frauds and delays. The Bill aims at restoring confidence of the general public in the real estate sector; by instituting transparency and accountability in real estate and housing transactions which in turn will enable the sector to access capital and financial markets essential for its long term growth.
"The Bill is also expected to promote regulated and orderly growth through efficiency, professionalism and standardization. It seeks to ensure consumer protection, without adding another stage in the procedure for sanctions," added Maken.
The Real Estate Bill contains provisions for dealing with the following:
* Registration of real estate projects and registration of real estate agents with the Real Estate Regulatory Authority
* Functions & duties of promoters and real estate agents
* Rights and duties of allottees
* Establishment of Real Estate Regulatory Authority
* Establishment of Central Advisory Council
* Establishment of Real Estate Appellate Tribunal
* Offences and penalties
* Finance, Accounts, Audits and Reports