Friday, 22 April 2016

Positives and Negatives of the new real estate bill

Much awaited bill has been passed by the parliament of India recently to help the consumer by creating transparency, accountability and fair deals in the real estate sector of India, which is notorious for its delays, under the table dealing and use of black money in business.

The positives of the bill are that it will create a state level regulatory authority to whom the consumers can complain. The authority will have power to start proceeding against the builders mentioned in the complaint and they can prosecute the builder. The model tenancy bill is also put before the cabinet for registering the tenancy agreements for solving disputes with special court.

When these laws will be implemented, they will encourage foreign direct investment in the sector and great housing unit for people. The builders will not be able to get huge profit from consumers.
But there is a problem, the shortage of land, has led to the development of marshlands, low land for building apartments. These building are made without adequate drain system, roads and sewage system. This was evident from the study of floods in Chennai and other cities. The environmental clearance is given without proper thought to the projects and lands demanded for the projects.

Under the new bill, the common account will be created, common parking for funds, to make sure that consumers are not robbed by the builders. Also the single window clearance, grading of developers and digitization of records will help to create quality in the real estate sector.

The consumer courts Real Estate Lawyers in Delhi will solve the disputes arising between consumers and builders. The builders cannot charge any extra money in name of new design or plan without first getting approval from consumers or buyers.

But the controversial environmental clearance will create problems in the future, if steps are not taken to address it properly. Last year the national green tribunal made it clear that area around okhla bird sanctuary cannot be used for construction. This led to the cancellation of project development around the areas and stopped the work for more than 70,000 buyers. Another 20,000 buyers could not take the possession of homes. Then environmental and forest ministry issued the guidelines limiting the areas around bird sanctuary and allowing the developers to clear the projects. This announcement gave huge relief to thousands of buyers.

 This kind of problems can Intellectual property firms in Delhi come in future, when lands close to green areas or forest area, will come for housing development. The clear policy to allot the land for construction activities will prevent the delay and financial difficulties to consumers. Because common buyers take loan from banks and any delay in giving it back, increases the burden of interests and principal sum on them.  The clear marking of land for forest and wide life will save lot of time and resources of both consumers and builders.

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