Bill to protect home buyers from fly-by-night developers soon

The much-awaited Real Estate Regulation Bill, 2011, which seeks to protect home-buyers from fly-by-night developers, is under process of consultation by various ministries.

"The draft Bill is almost being finalised. We have sent the Bill to Law Ministry for their approval and subsequently we will sending it to other ministries for approval," Ministry of Housing and Urban Poverty Alleviation Joint Secretary SK Singh said today.

Singh, who was speaking to reporters on the sidelines of a RICS event here, said the Bill would go to the Cabinet for approval after all the ministries have vetted it, but declined to give a timeline for placing it in Parliament.

The Bill, which has been drafted taking into account the interests of all stakeholders and real estate developers, would set the tone for reforms in the housing sector.

"The Bill will not cover the pricing of property as the intention is not to strangulate the sector but to make real estate properties easily available," Singh said.

The Bill is in the making for more than three years now.

Sources in the Housing and Poverty Alleviation Ministry said since land is a state subject and there are many issues involved in the enactment of the Bill.

The Centre can only enact a model Bill which can be referred to the state government for their consideration.

There is a demand-supply gap for low cost houses and the purpose of the Bill is to protect the interest of consumers while also taking into account the concerns of stakeholders. .

Singh was speaking at the book launch of UK-based self- regulatory body for qualifications and standards, Royal Institution of Chartered Surveyors (RICS).

RICS today launched the India edition of the 'Red Book' which lays down mandatory rules for its members.

"The book would provide guidance on valuation of real estate properties under the current Accounting Standards and would help valuers in different ways, including mergers and acquisitions," RICS India Country Head Sachin Sandhir said.