The much awaited Real Estate (Regulation & Development) Bill has been envisaged as a landmark reform for the real estate sector and as a milestone for the industry. The bill is expected to bring in more transparency and efficiency into the system.
2016 has been a year of challenges for the real estate industry and one of the major challenge is of putting a reliable system.
The Real Estate (Regulations and Development) Bill seeks to balance out the interest of all the stakeholders.
With many projects in the advanced stages of construction or in the process of a handover, further clarity is needed on the applicability of the key conditions of the Bill on existing projects. For instance, guidance on establishing escrow accounts for projects, etc.
Clear guidelines are required on whether projects recently approved, but not formally launched, would be governed by the Bill or not.
The financial penalty for the contravention of the provisions of the law is 5 to 10 percent of the estimated project cost/building cost could help avoid ambiguity at a later stage.
No inclusion of any guidelines regarding the operation and maintenance phase of the project until handover of same to Residents Welfare Association. The cost and services component of this phase of the project are included in customer agreements, and the level/extent of the service provided has often been a key area of concern for customers and developers alike.
There is still a need for a clear definition of the term ‘structural defects’ to avoid any ambiguity or misinterpretation in the future.
A Conference to discuss Real Estate (Regulation & Development) Act, 2016 was held on 31st August 2016 @ Novotel Mumbai.
Some of the speakers at the conference were Mr. Sanju Ahooja, Head Legal – L & T Realty, Mr. Sandeep Dave, Partner – Cyril Amarchand Mangaldas, Col Rajbir Malik, CEO & Director, Rare Townships Pvt Ltd., Mr. Mukund Rathi, SVP – Lavasa Corp Ltd., Mr. Ishtiaq Ali, Senior Partner – Orbit Law Services, Ms. Divya Malcolm, Principal Associate – Kochhar & Co.
Mr. Tejas Ubale, Founder & Managing Partner was the chairperson for the conference.