Reaction on the real estate bill by Knight Frank India

`This is a welcome and a long awaited measure that both the consumer and the relators were asking for. However while consumers have a lot to gain from this, the realtors will have mixed feelings.. Even though progressive developers and trade chambers have welcomed it the Bill appears to be a tad harsh for relators. The questions in my mind are:

- This is an additional mechanism, over and above the existing plethora of authorities who grant permissions and approvals. Have we missed an opportunity to club all regulating authorities and have a single window clearance?

- Projects can`t be launched before all construction plans passed and approvals in place. Will this delay the project cycle further? And will this be practical keeping in mind that the biggest reason for delays in any project is getting plans approved.

- Developers will have to learn and come out with an entirely new way to `go-to-market`

- 70% of the sales proceeds collected to be kept in a separate account for each project. This is good where land cost is low. However for projects where land prices are high and the developer has already disposed of that liability, then will cash flows match?

- The Bill does not factor in delays on account of intermediaries, regulators and other players like contractors.`