Home       Top Rated       Submit Article     Advanced Search     FAQ       Contact Us       Lawyers in India       Law Forum     RSS Feeds     

Register your Copyright Online

We offer copyright registration right from your desktop click here for details.

Latest Articles | Articles 2014 | Articles 2013 | Articles 2012 | Articles 2011 | Articles 2010 | Articles 2009 | Articles 2008 | Articles 2007 | Articles 2006 | Articles 2000-05

Search On:Laws in IndiaLawyers Search

Mutual Consent Divorce in Delhi
We provide fast, cost effective and Hassle free solution.
Contact us at Ph no: 9650499965 (Divorce Law Firm Delhi)
File Caveat in Supreme Court
Contact Ph no: +9650499965

Main Categories
 Accident Law
 Animal Laws
 Aviation Law
 Bangladesh Law
 Banking and Finance laws
 Case Laws
 Civil Laws
 Company Law
 Constitutional Law
 Consumer laws
 Contracts laws
 Criminal law
 Drug laws
 Dubai laws
 Educational laws
 Employment / Labour laws
 Environmental Law
 family law
 Gay laws and Third Gender
 Human Rights laws
 Immigration laws
 Insurance / Accident Claim
 Intellectual Property
 International Law
 Juvenile Laws
 Law - lawyers & legal Profession
 Legal Aid and Lok Adalat
 Legal outsourcing
 Media laws
 Medico legal
 Real estate laws
 Right To Information
 Tax Laws
 Torts Law
 Woman Issues
 Workplace Equality & Non-Discrimination
 Yet Another Category

More Options
 Most read articles
 Most rated articles

Subscribe now and receive free articles and updates instantly.


Published : June 23, 2013 | Author : vineetsahay
Category : Real estate laws | Total Views : 5413 | Rating :



The Real Estate (Regulation And Development) Bill-The First Step Towards Real Estate Reform

The growth of any country can be measured by the growth of its real estate sector. However this sector in India is far from transparency, disclosure and commitment. The Sector is unable to go with its robust growth attained during last decade. This sector is bias towards Builders / Promoters / Developers / Real Estate Brokers etc., the purchasers are not at par level with the promoters. We can compare this sector with the capital market during the pre-regulated and pre-SEBI era.

The industry is suffering with the following irregularity:
1. The project is not vetted by one single authority, but by different authorities from different angles.
2. There is no provisions which compel the builders to utilise the fund raised from a project shall not be diverted to another project;
3. The actual area under sale are not uniform and open for manipulation by the builders;
4. Multiplicity of brochures and advertisement material for project which often misguide the purchasers;
5. Clearances for constructions are not known to investors/purchasers;
6. Lack of efficient and transparency during the construction period;
7. Interest of consumer are not secured and they cannot enforce their advance against the property i.e. land during the construction period if the land is mortgaged to Bank/Financial Institutions.
8. Multiple laws and regulations which are not known to investors
9. Common law are not sufficient to address the grievances of real estate investors or client;
10. Non registration of Real Estate broker;

The Government, economists and civil society felt that a separate body is required to regulate and administer this sector.

The first draft of Real Estate (Regulation and Development) Bill has come 5 year ago and now the Union cabinet of ministry has passed much awaited Real Estate (Regulation and Development) Bill on 4th June, 2013. The next step is to table it in parliament this Monsoon season. Though does not provide complete solution but certainly the first step towards addressing the above problems.

This bill is aim to register a real estate project and establish the Real Estate Regulatory Authority for regulation and planned development in the real estate sector and to ensure sale of immovable properties in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and establish an Appellate Tribunal to adjudicate disputes and hear appeals from the decisions or orders of the Authority.

The arrangements of the Bill are as below:
Arrangement Of Bill
The Real Estate (Regulation & Development) Bill, 2011
From the bird view, we can imagine that the main regulatory portions of the proposed act are Chapter I, Chapter II and Chapter III and remaining portion of the bill are important for administration of the bill.

-Chapter II-
Registration of Real Estate Project and Transfer of Immovable Properties with Real Estate Regulatory Authority.
1. After commencement of this act every project developed on land having more than 4000 Sq. Metre will required to be registered. However this area may be increased or decreased by notification of Central Govt. with consultation with State Govt. of Union Territory Govt. This area may be differing from state to state/Union territory.
2. Every existing project not more than one year old will also required to be registered. The registration will required to be done within 6 month from the date of commencement of this act.
3. The project must be registered or refused to be register within 30 days from the date of submission an application for such registration. On refusal the reason(s) for refusal must be recorded and communicated to the applicant and opportunity of being heard also will granted to the applicant.
4. The bill also provides a brief procedure of making application alongwith the list of documents/annexure filed alongwith the application. However a detailed guideline and regulation is expected to come after enactment of this bill.
5. Once the project gets registered, it shall be listed on the portal of web-site of the Real Estate Regulatory Authority (RERA).
6. The registration shall be valid for the period for which the project approved by the appropriate govt. (Town and Country Planning Dept of the State in which the project is located). This time period may be renewed for one year (maximum total renewal will not more than 2 year) at a time subject to such extension already granted by concerned appropriate govt.
7. After laps of the registration the RERA will intimate the same to the appropriate govt.
8. On the violation of terms and condition or any other violation, the registration will be cancelled and the same will be intimated to competent authority. The web-site of the RERA mentioned the de registration and name of the promoter put into the defaulter list.

-Chapter III-
Obligations of Promoter and Allottee.
1. The promoter shall not issue or publish an advertisement or prospectus, or invite any member of the public to buy or book in such projects to be developed or take advances or deposits without obtaining a copy of certificate of registration with the Authority.

2. 70% of the booking amount received by a promoter shall be deposited in a separate bank account maintained in a schedule bank and withdrawal from the account shall only be made for the purpose to meet expenditure towards the project.

3. The promoters shall be liable to manage his page of web-site of RERA, the page will contain every details of the promoters and the project, such page shall be updated every fortnightly.

4. The promoter shall adhere with the approved plan and cannot deviate from it. The allottee is entitle to get rectified any deviation even after getting possession of the property but before expiry of one year from the date of the possession.

5. The conveyance deed will be executed by the promoter only after getting the occupational certificate.

6. The entire amount shall be refundable to the applicant with interest in the case of the project cannot be completed by him, in addition to the above interest the promoter also shall be liable to pay penalty.

-Chapter IV-
The Real Estate Regulatory Authority
1. The State Govt. / Central Govt. will establish a Real Estate Regulatory Authority for administration and regulation the Real Estate business in the respective state.
2. The power and functions of the RERA shall be defined at the time of constitution.
3. The RERA will be act as main administrator and regulator of the Act.

-Chapter V-
Appellate tribunal
1. The Central Government shall, by notification in the Official Gazette, establish an Appellate Tribunal to be known as the Real Estate Appellate Tribunal (REAT).

The function of the REAT will be
(a) adjudicate any dispute
(i) between a promoter and a allottee;
(ii) between a promoter and Authority;
(iii) between Appropriate Government and the Authority.

(b) hear and dispose of appeal against any direction, decision or order of the Authority under this Act.

2. An appeal shall lie against any order of the Appellate Tribunal to the Supreme Court on one or more of the grounds specified in section 100 of that Code of Civil Procedure within 90 days of the order.

· The interlocutory order is not appealable.

Offences and Penalties

Section 50
Contravenes the provisions of section 3 - imprisonment for a term upto three (03) year or a penalty upto ten per cent (10%) of the estimated cost of the real estate project, or with both.

Section 51
Any offence other than contravention of Section 3 - a penalty upto Five per cent (5%) of the estimated cost of the real estate project.

Section 52
Fails to comply with, or contravenes any of the orders or directions of the Authority- Rupees. One Lac per day of contravention upto the maximum amount of Five per cent (5%) of the estimated cost of the real estate project.

Section 53 Offence made by Company

Section 54 Compounding of offence.

Chapter VIII and IX are mainly deal with the administration of RERA.

Therefore the bill covers almost every unregulated area where an effective regulatory mechanism has been required.

However the proposed bill is failed to address the following areas:
1. The bill does not make any difference between residential and commercial project;
2. The bill but not that of other important stakeholders in a real estate project like
a. Government agencies/authorities at centre, state and municipal level;
b. Financing agencies like Bank/Financial Institutions
c. Brokers, Underwriters and Bulk Purchasers

3. Does not provide any mechanism transfer of booking during the period of construction.
4. The bill does address effective step toward curbing black money investment in the real estate business.
5. The bill does not provide additional securities for retail purchasers.

With a few anomalies the Real Estate (Regulation & Development) Bill will improve buyer confidence and boost demand for residential real estate.

The  author can be reached at: vineetsahay@legalserviceindia.com

1 2 3 4 5
Rate this article!     Poor

Most viewed articles in Real estate laws category
Difference between lease and licence
Violation of Easementary Rights
Basic Prerequisites for Rent and Lease Agreements in India
Protection of Tenants Against Eviction
Periodic Tenancy
Word History of Mortgage in India
The Real Estate (Regulation And Development) Bill-The First Step Towards Real Estate Reform
The Real Estate Regulation and Development Bill, 2011
Impact of Ordinance on Electricity Act 2003
Special Acts and the Transfer of Property Act, 1882 - Harish Chandra Hegde v. State of Karnataka
SPES Successionis As An Exception To Transferability
Economic Persecution Pauperism of a Consumer in a Real Estate Market
Most recent articles in Real estate laws category
Special Acts and the Transfer of Property Act, 1882 - Harish Chandra Hegde v. State of Karnataka
Economic Persecution Pauperism of a Consumer in a Real Estate Market
SPES Successionis As An Exception To Transferability
Protection of Tenants Against Eviction
Basic Prerequisites for Rent and Lease Agreements in India
Difference between lease and licence
Impact of Ordinance on Electricity Act 2003
The Real Estate Regulation and Development Bill, 2011
Word History of Mortgage in India
The Real Estate (Regulation And Development) Bill-The First Step Towards Real Estate Reform
Violation of Easementary Rights
Periodic Tenancy

Article Comments

Posted by Debashis Mitra on January 20, 2015
I have booked a flat at plava city lodha. At the time of possesion they
are not allocating a parking near by my building.i am first person to
clear all dues and eligible for possession. They are alloacated a
parking which is 2 minutes away from my building. Argument they are
giving is parking is decided randomly and no parking is avaliable near
my building.can builder allocate parking as per their wish please

Posted by Umesh on September 18, 2013
Dear Sir/Madam,

There is a property for sale in Bangalore which I am interested. The owner has below documents:

1. Sale deed registered in 1988.
The property was purchased by a person (Name Thomas) who reside in Dubai. Thomas gave power of attorney to his relative (Name Mathews) who was residing in Mumbai at that time. Mathews purchased the property in the name of Thomas. This power of attorney papers is not available.

2. Sale deed registered in 2005.
By this time Mathews had expired. Hence Thomas got another power of attorney in the name of Mrs. Mathews (wife of Mathews, lives in Mumbai). This was done in 1997.

3. Power of attorney executed by Thomas in the name of Mrs. Mathews. This was done in Dubai and our Indian Consulate has signed/authorized. This is not a registered document. However this has passport details of Thomas along with the signature from Consulate.

4. Chandrakala was the person who purchased this in 2005 and 2006 she constructed and living there now. She has sanction plan, tax paid receipt and all other required document.

Now my question is the power of attorney is not registered or they have not paid stamp duty. Also we do not have power of attorney which was done in the name of Mathews (expired later) for purchasing the land. Are there any legal complications in this? Can I go ahead and purchase this property?

Thanks & Regards,

Posted by Prashanth on August 18, 2013
landlonrd is increasing unlawful amount and when we speak against it,
the landlord is blackmailing us by saying 'I will give you 3 month's
time you can vacate if you can't pay' and also demanding that we have to
get the house repainted in tenant's money if we wish to continue'

Please login or register a new free account.

Random Pick
Meeting means a gathering or assembly of persons convened for the conducting of business. The meeting is an assembly of persons whose consent is required for anything to decide, expressing their consent by a proper majority of votes, whether or not that thing should be done...

» Total Articles
» Total Authors
» Total Views
» Total categories

Law Forum

Legal Articles

Lawyers in India- Click on a link below for legal Services

lawyers in Chennai
lawyers in Bangalore
lawyers in Hyderabad
lawyers in Cochin
lawyers in Pondicherry
lawyers in Guwahati
lawyers in Nashik

lawyers in Jaipur
lawyers in New Delhi
lawyers in Dimapur
lawyers in Agra
Noida lawyers
lawyers in Siliguri

For Mutual consent Divorce in Delhi

Ph no: 9650499965
For online Copyright Registration

Ph no: 9891244487
Law Articles

lawyers in Delhi
lawyers in Chandigarh
lawyers in Allahabad
lawyers in Lucknow
lawyers in Jodhpur
Faridabad lawyers

lawyers in Mumbai
lawyers in Pune
lawyers in Nagpur
lawyers in Ahmedabad
lawyers in Surat
Ghaziabad lawyers

lawyers in Kolkata
lawyers in Janjgir
lawyers in Rajkot
lawyers in Indore
lawyers in Ludhiana
Gurgaon lawyers


India's Most Trusted Online law library
Legal Services India is Copyrighted under the Registrar of Copyright Act ( Govt of India) 2000-2017
 ISBN No: 978-81-928510-1-3