Realtors body NAREDCO hailed the passage of real estate regulatory bill by Parliament but said the new law should also have fixed the accountability of government agencies sanctioning the projects.
The Real Estate (Regulation and Development) Bill was passed by the Lok Sabha, five days after its passage by Rajya Sabha.
"The Bill seeks to protect the interest of the home buyers by enhancing transparency and fixing the accountability of developers, brokers and consumers, but it would have been more appreciated by the industry incase the accountability of financial institutions, Government and Government agencies, who have great role to play in project implementation, was also fixed," NAREDCO President Praveen Jain said.
He hoped that this would also be included at some stage.
Jain also said that the new law should have provision for single window process to facilitate quicker approval.
He also said that the provision of parking 70 percent of the funds received from buyers for a project into an escrow account would "definitely pose a financial challenge to builders".
Gaurav Karnik, Partner & National Leader - Real Estate & Infrastructure, EY India, said "Real Estate Bill will bring greater transparency, timely completion of projects, reduction in fly by night operators in the sector".
It would also ensure that customers are treated fairly by ensuring no arbitrary changes in project plans, full disclosure on apartment size and fairer penalty provisions.
"Establishment of a regulator will give greater confidence to foreign investors in the sector. However, certain key asks of the sector such as introduction of single window clearances system, coverage of civic and other related authorities under its ambit, etc. are not covered under this Bill. Overall a welcome move for the sector," he added.
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