India's Real Estate Bill Awaits For Approval

India's Real Estate Bill Awaits For Approval

There is an expectation of establishment of a state-level agency which will safeguard the interests of property investors in India real estate. The real estate's Regulations and Development Bill 2015 is currently in the hands of the Parliament. The last draft of the bill finally got the approval of cabinet of India in December 2015.

The bill basically calls for the regulation of all the real estate transactions that are applicable for commercial as well as the residential projects. This requires all the listed projects to disclose all the details of development, from construction, agreements, layout plans and approvals with the agents of the property, details of the engineering and the architectural among the others.

According to the bill, it will be mandatory for the builders or developers to credit almost 70% of the sales incomes from buyers into an escrow account within 15 days in the bank to cover the construction costs. Earlier, this amount was 50% of the proceeds.

It is being believed that the major reason for the delay of projects is that the developers invest a part of the said amount into another project. The bill covers at least 500 sqm which was widened to the initial 1000 sqm.

This decision will not only protect the consumers but will also encourage the buyers to invest in the India Real Estate buyers, both international and domestic.

The government is hopeful and confident that the bill will be passed during the next Budget sessions, also, many builders are backing the bill. Also, at present this is one of the priorities of the government and according to them no party is against this at all their recommendations are practically and sensibly incorporated into the bill.

With this bill being passed, there is an estimation of around 4,000 new arrivals in the India real estate projects which are expected to launch this year. This will definitely give the needed boost to the real estate market in the country.

This decision will not only protect the consumers but will also encourage the buyers to invest in the India real estate buyers, both international and domestic.

The government is hopeful and confident that the bill will be passed during the next Budget sessions, also, many builders are backing the bill. Also, at present this is one of the priorities of the government and according to them no party is against this at all their recommendations are practically and sensibly incorporated into the bill. 

Source : articlesbase.com