The Real Estate (Regulation and Development) Bill was revised to improve transparency in the real estate sector in India. However, the Federation of Indian Chambers of Commerce and Industry (FICCI) has suggested that the bill should not become a hurdle for developers. It said that instead of creating a true regulator, the bill will create another approval authority.
As per the bill, all the developers who are developing land plots exceeding 4,000 square meters should register with the Real Estate Regulatory Authority. All the details of the projects such as land status, statuary approvals, and contractual obligations for the registration process should be disclosed by them. However, it is suggested to make these disclosure norms stringent. It is also suggested to inquire other stakeholders including government authorities, at the center, state and municipal levels, that provide approvals, concerned financiers and consumers who have agreed to a certain timeline for payments to the developers and even brokers who sometimes mislead hommebuyers, in case of project delays.
The proposal of the revised bill which does not allow a developer to collect any advance before the approval, may encourage the flow of black money as the builders get into collecting money from customers. So, in order to avoid this, FICCI desires to allow pre-sales to institutional investors. The organization also intends to include commercial properties along with residential ones under the purview.