Kolhapur: The city’s real estate sector has welcomed passing of the much awaited Real Estate Bill, which aims to protect the interests of buyers and bring more transparency, in Rajya Sabha on Thursday. The business fraternity expects that the new Act will eliminate ill-practices that have entered the business in the absence of regulatory laws.
Rajya Sabha has cleared the Real Estate (Regulation and Development) Bill at the national and state levels, along with many other provisions to regulate the unorganised business sector. Local developers and builders said though the implementation of the Act will take a little bit of time, the overall provisions to make the business clean are satisfactory.
“We were certainly looking forward to the development. It is good that the Bill has been finally passed. But it will now go to the President after which its details will be chalked out. We are now awaiting appointment of the Maharashtra state real estate regulatory authority, which would have a greater impact on the business. The bill as well as provisions of the state government are expected to remove ill-practices from the business,” said Rajeev Parikh, vice-president of Confederation of Real Estate Developers’ Associations (Credai), Maharashtra chapter.
“Those engaged in malpractices will be automatically eliminated after implementation of the law. Only honest builders will survive. The builders will have to provide whatever they have committed in the original plan. They cannot run away from their responsibilities. The Escrow account provision will ensure that the customers’ money is being utilised for the project they have chosen,” Parikh added.
The local branch of Credai believes that the builders, who were cheating by selling one flat to many customers, will be restricted from entering the business. “We have only one concern. There is no clarity whether the Act will be applicable for ongoing constructions. If so, then some of the builders may face problems as their work may not be according to the guidelines of the new Act,” said Mahesh Yadav, president of Kolhapur Credai.
“We welcome the provisions. The state authority must be established soon so that the builders can judge implementation of the Act,” he added.
‘Fraternity hopes property sale boom’
As many as 3,500 houses are under construction in the city and adjoining areas in which over Rs 700 crore has been invested, according to Credai. In 2013 and 2014, the business experienced a slump because of which not more than 1,500 units were sold. In 2015 and particularly in the last six months, the business started gathering momentum. Now, the fraternity expects boom in the sale of residential and commercial properties by year-end.
(source by:-The Times of India )