Hyderabad: The Centre has proposed to bring a law to regulate and streamline real estate business that is making developers jittery, but may hopefully have buyers smiling.
The previous Bill has lapsed and the BJP government is now interacting with real estate stakeholders and the states. The Centre plans to incorporate their views and bring out a revised Bill.
The Bill proposes setting up of a regulatory body and an appellate authority in every state. Builders cannot take up any construction activity without permission from the regulatory authority. This body will have a chairman and members with administrative powers.
“Promoters have to produce documents for inspection. Advance or deposits cannot be collected from buyers without entering into a sale agreement. The authority will also scrutinise advertisements so that builders cannot mislead buyers. Buyers have the option to take the deposits back, with interest, if they want to cancel the agreement. The state government will also come out with another law in accordance with the proposed Bill to avoid clashes with the existing laws,” said O. Kiran Babu, a real estate expert.
However, realtors in the state are vehemently opposing the Bill claiming that it would lead to red tape and an additional tax burden on buyers. “As many as 18 departments are currently handling the state’s real estate activity. With the establishment of a new authority, builders will be in deep trouble,” said C. Sekhar Reddy, president of the Confederation of Real Estate Developers’ Associations of India, Hyderabad.
The Greater Hyderabad Builders’ Federation organising secretary, M. Prem Kumar, said, such stringent norms will prevent small builders from taking up construction activity.
“Builders run around for months for clearances. Practical difficulties are not being considered,” he said.
