Rajya Sabha clears Real Estate Bill seeking to make consumer the king

Published By : Admin | March 10, 2016 | 17:30 IST
Rajya Sabha clears Real Estate Bill seeking to make consumer the king
Original Real Estate Bill of 2013 undergoes substantial changes for the better
Real Estate Bill seeks to protect the interests of the large number of aspiring house buyers
Notoriety in real estate sector needs to be ended to encourage investment flows: Venkaiah Naidu
Real Estate Bill enhances credibility of construction industry; promotes transparency, accountability & efficiency in execution of projects
Real Estate Bill: Norms for registration of projects has been brought down to plot area of 500 sq.mts

Rajya Sabha today approved the Real Estate (Regulation and Development) Bill,2016 that seeks to protect the interests of the large number of aspiring house buyers while at the same time enhancing the credibility of construction industry by promoting transparency, accountability and efficiency in execution of projects. The Bill seeks to put in place an effective regulatory mechanism for orderly growth of the sector which is the second largest employer after agriculture.

Moving the Bill pending in Rajya Sabha since 2013 for further consideration and passing, Minister of Housing & Urban Poverty Alleviation Shri M. Venkaiah Naidu stated that over the years the sector has acquired a degree of notoriety which needs to be addressed to enable enhanced flow of investments, for which the Government has announced several incentives in the Budget for 2016-17 and earlier.

Shri Naidu further said that consumer has become the king in telecom sectorfurther to introduction of a regulator. While there are only a few operators in telecom sector, a total of 76,044 companies are involved in real estate sector including 17,431 in Delhi, 17,010 in West Bengal, 11,160 in Maharashtra, 7,136 in Uttar Pradesh, 3,054 in Rajasthan, 3,004 in Tamil Nadu, 2,261 in Karnataka, 2,211 in Telangana, 2,121 in Haryana, 1,956 in Madhya Pradesh, 1,270 in Kerala, 1,202 in Punjab and 1,006 in Odisha.

Stating that real estate sector contributes about 9% GDP, the Minister informed the House that between 2011 and 2015, new projects in the range of 2,349 to 4,488 were launched every year amounting to a total of 17,526 projects with investment value of Rs.13.70 lakh cr in 27 cities including 15 state capitals. According to industry information, about 10 lakh buyers invest every year to own a house of their own.

Shri Naidu asserted that with so many operators in the sector and such huge investments at stake, regulating the real estate sector has become necessary in the interest of consumers and developers. He said: “Consumer shall be the king as in telecom sector and the developer obviously the queen. And there shall be a happy marriage between the two for both to live happily ever after and the Bill seeks to forge such a happy alliance for the benefit of real estate sector.”

The Minister said that several rounds of consultations were held with consumer and developer bodies, state governments and other stakeholders  before and after introduction of the Bill in Rajya Sabha in 2013 and  as a result, the Bill has undergone substantial changes benefitting the sector as a whole. Shri Naidu outlined the improvements made in the Bill of 2016 as follows:

  1. The Government has gone beyond the recommendation of the Select Committee and now requiring developers to deposit 70% of the collections form buyers in a separate accounts towards the cost of construction including that of land as against a minimum of 50% suggested by the Select Committee;
  2. Norms for registration of projects has been brought down to plot area of 500 sq.mts or 8 apartments as against 4,000 sq.mt proposed in the draft Bill in 2013 and 1,000 sq.mts or 12 apartments suggested by the Standing Committee;
  3. Commercial real estate also brought under the ambit of the Bill and projects under construction are also required to be registered with the Regulatory Authority. About 17,000 projects are reported to be at various stages of development;
  4. Capret area has been clearly defined which forms the basis for purchase of houses, eliminating any scope for any malpractices in transactions
  5. Ending the earlier asymmetry which was in favour of developers, both consumers and developers will now have to pay same interest rate for any delays on their part;
  6. Liability of developers for structural defects have been increased from 2 to 5 years and they can’t change plans without the consent of two thirds of allottees;
  7. The Bill provides for arranging Insurance of Land title, currently not available in the market which benefits both the consumers and developers if land titles are later found to be defective;
  8. Specific and reduced time frames have been prescribed for disposal of complaints by the Appellate Tribunals and Regulatory Authorities; and
  9. A provision is now made for imprisonment of up to 3 years for developers and up to one year in case of real estate agents and consumers for any violation of Tribunals and Regulatory Authorities.

The Bill requires project promoters to register their projects with the Regulatory Authorities disclosing project information including details of promoter, project including schedule of implementation, lay out plan, land status, status of approvals, agreements along with details of real estate agents, contractors, architects, structural engineers etc. Shri Naidu said that this enables transparent, accountable and timely execution of projects.

The Minister further said that the Real Estate Bill,2016 enables the people meet their genuine aspirations of owning a house including those of urban poor by giving a fillip to affordable housing initiative under which the Government intends to enable construction of 2 crore by the year 2022 under Prime Minister’s Awas Yojana (Urban).

Chronology of events leading to the passage of Real Estate Bill by Rajya Sabha:

-Ministry of Law & Justice suggested a Central Law for regulation of real estate sector in July, 2011;

-Union Cabinet approved the Real Estate Bill, 2013 on June 4,2013;

-Bill was introduced in Rajya Sabha on August 14, 2013;

-Bill was referred to the Department Related Standing Committee on September 23,2013;

-Report of the Standing Committee was tabled in Rajya Sabha on February 13 and in Lok Sabha on February 17,2014;

-Attorney General upheld validity of central legislation for real estate sector on February 9,2015;

-Union Cabinet approved Official Amendments based on the recommendations of the Standing Committee on April 7,2015;

-Bill of 2013 and Official Amendments referred to the Select Committee of Rajya Sabha on May 6, 2015;

-Select Committee tables its report along with the Bill of 2015 on July 30,2015;

-Real Estate Bill, 2015 was approved by the Union Cabinet on December 9, 2015;

-Bill,2015 was listed for consideration and passing in Rajya Sabha on 22nd and 23rd December, 2015 but could not be taken up; and

-The Real Estate (Regulation & Development) Bill, 2016 passed by Rajya Sabha on March 10,2016.

Explore More
No ifs and buts in anybody's mind about India’s capabilities: PM Modi on 77th Independence Day at Red Fort

Popular Speeches

No ifs and buts in anybody's mind about India’s capabilities: PM Modi on 77th Independence Day at Red Fort
PM Modi shares two takeaways for youth from Sachin Tendulkar's recent Kashmir trip: 'Precious jewel of incredible India'

Media Coverage

PM Modi shares two takeaways for youth from Sachin Tendulkar's recent Kashmir trip: 'Precious jewel of incredible India'
NM on the go

Nm on the go

Always be the first to hear from the PM. Get the App Now!
...
PM to visit Jharkhand, West Bengal and Bihar on 1st-2nd March
February 29, 2024
PM to inaugurate, dedicate and lay the foundation stone of multiple development projects worth Rs 35,700 crore in Jharkhand
PM to dedicate Sindri Fertiliser Plant to the nation; Third fertiliser plant to be revived in the country after revival of fertiliser plants in Gorakhpur and Ramagundam
PM to dedicate to nation North Karanpura Super Thermal Power Project, Chatra
Railway sector to get major boost in Jharkhand; PM to flag off three new trains in the state
PM to inaugurate, dedicate and lay the foundation stone of multiple development projects worth Rs 22,000 crore in West Bengal
PM to lay the foundation stone of Raghunathpur Thermal Power Station Phase II
PM to inaugurate Haldia-Barauni Crude Oil Pipeline
PM to dedicate and lay the foundation stone of multiple projects for strengthening infrastructure at Syama Prasad Mookerjee Port, Kolkata
Several other projects related to rail, road, LPG supply and wastewater treatment to be the key focus areas in West Bengal
In a significant boost to the energy sector, nationwide projects worth Rs 1.48 lakh crore related to oil and gas sector to be taken up at Begusarai
Marking the historic achievement in India's energy sector, PM to dedicate to the nation the extraction of ‘First Oil’ from KG Basin
PM to inaugurate, dedicate and lay the foundation stone of multiple development projects worth more than Rs 34,800 crore in Bihar
PM to lay the foundation stone of the project for expansion of the Barauni refinery; PM to inaugurate several other projects at the refinery
PM to inaugurate the Barauni fertiliser plant; Fourth fertiliser plant to be revived in the country
National highways network, rail infrastructure, Namami Gange Programme to also get major boost in Bihar; PM to also flag off four new trains in Bihar
PM to lay foundation stone of a new six lane bridge across River Ganga in Patna
PM to lay foundation stone of Unity Mall in Patna
PM to dedicate ‘Bharat Pashudhan’- digital database for livestock animals in the country; PM to also launch ‘1962 Farmers App’ for farmers to utilise ‘Bharat Pashudhan’ database

Prime Minister Shri Narendra Modi will visit Jharkhand, West Bengal and Bihar on 1st-2nd March, 2024.

On 1st March, at around 11 AM, Prime Minister will reach Sindri, Dhanbad, Jharkhand and participate in a public programme, where he will inaugurate, dedicate and lay the foundation stone of multiple development projects worth Rs 35,700 crore in Jharkhand. At around 3 PM, Prime Minister will participate in a public programme where he will inaugurate, dedicate and lay the foundation stone of multiple development projects worth more than Rs 7,200 crore in Arambagh, Hooghly, West Bengal.

On 2nd March, at around 10:30 AM, Prime Minister will reach Krishnanagar, Nadia district, West Bengal, where he will inaugurate, dedicate and lay the foundation stone of multiple development projects worth Rs 15,000 crore. At 2:30 PM, Prime Minister will inaugurate, dedicate and lay the foundation stone of multiple development projects worth Rs 21,400 crore in Aurangabad, Bihar. At 5:15 PM, Prime Minister will reach Begusarai, Bihar where he will participate in a public programme and inaugurate, dedicate and lay the foundation stone of multiple oil and gas sector projects worth about Rs 1.48 lakh crore across the country, and several development projects in Bihar worth more than Rs 13,400.

PM at Sindri, Jharkhand

At the public programme in Sindri, Dhanbad, Prime Minister will inaugurate, dedicate to nation and lay the foundation stone of multiple developmental projects related to fertiliser, rail, power, and coal sector.

Prime Minister will dedicate to the nation the Hindustan Urvarak & Rasayan Ltd (HURL) Sindri Fertiliser Plant. Developed at a cost of more than Rs 8900 crore, the fertiliser plant is a step towards self-sufficiency in the Urea Sector. It will add about 12.7 LMT per annum indigenous urea production in the country benefiting the farmers of the country. This is the third fertiliser plant to be revived in the country, after the revival of fertiliser plants at Gorakhpur and Ramagundam, which were also dedicated to the nation by the Prime Minister in December 2021 and November 2022 respectively.

Prime Minister will inaugurate, dedicate and lay the foundation stone of several rail projects worth more than Rs 17,600 crore in Jharkhand. The projects include 3rd & 4th Line connecting Sone Nagar-Andal; Tori- Shivpur first & second and Biratoli- Shivpur third railway line (part of Tori- Shivpur Project); Mohanpur – Hansdiha new rail line; Dhanbad-Chandrapura rail line, among others. These projects will expand the rail services in the state and lead to socio-economic development in the region. Prime Minister will also flag off three trains during the programme. This includes Deoghar – Dibrugarh train service, MEMU Train Service between Tatanagar and Badampahar (Daily) and long-haul freight train from Shivpur station.

Prime Minister will also dedicate to nation important power projects in Jharkhand including the Unit 1 (660 MW) of North Karanpura Super Thermal Power Project (STPP), Chatra. Developed at more than Rs 7500 crore, the project will lead to improved power supply in the region. It will also boost employment generation and contribute to socioeconomic development in the state. Also, Prime Minister will also dedicate to nation projects related to the coal sector in Jharkhand.

PM at Arambagh, West Bengal

At Arambagh, Hooghly, Prime Minister will lay the foundation stone and dedicate to nation multiple developmental projects related to sectors like rail, ports, Oil Pipeline, LPG supply and wastewater treatment.

Prime Minister will inaugurate Indian Oil's 518-km Haldia-Barauni Crude Oil Pipeline developed at a cost of about Rs 2,790 crore. This pipeline passes through Bihar, Jharkhand and West Bengal. The pipeline will supply crude oil to Barauni Refinery, Bongaigaon Refinery and Guwahati Refinery in a safe, cost-efficient, and environment-friendly manner.

Prime Minister will also dedicate to nation and lay the foundation stone of multiple projects for strengthening of infrastructure at Syama Prasad Mookerjee Port, Kolkata worth about Rs 1000 crore. The projects whose foundation stone will be laid include reconstruction of Berth No. 8 NSD and mechanisation of berth no. 7 & 8 NSD of Kolkata Dock System. Prime Minister will also dedicate to nation the project for augmentation of the firefighting system at oil jetties of Haldia Dock Complex, Syama Prasad Mookerjee Port. The newly installed fire-fighting facility is a state-of-the-art fully automated set-up equipped with cutting edge gas and flame sensors, ensuring immediate hazard detection. Prime Minister will dedicate the third Rail Mounted Quay Crane (RMQC) of Haldia Dock Complex with lifting capacity of 40 Tonnes. These new projects at Syama Prasad Mookerjee Port, Kolkata will boost the productivity of the port substantially by helping in faster and safer cargo handling and evacuation.

Prime Minister will dedicate to the nation important rail projects worth about Rs 2680 crore. The projects include the third rail line connecting Jhargram - Salgajhari (90 Kms); doubling of Sondalia – Champapukur rail line (24 Kms); and doubling of Dankuni – Bhattanagar – Baltikuri rail line (9 Kms). These projects will expand the rail transport facilities in the region, improve mobility and facilitate seamless service of freight traffic leading to economic and industrial growth in the region.

Prime Minister will also inaugurate Indian Oil’s LPG Bottling plant with a capacity of 120 TMTPA at Vidyasagar Industrial Park, Kharagpur. Developed at a cost of more than Rs 200 crore, the LPG bottling plant will be the first LPG bottling plant in the region. It will supply LPG to about 14.5 lakh customers in West Bengal.

Prime Minister will inaugurate three projects related to wastewater treatment and sewerage in West Bengal. These projects, developed at a cost of about Rs 600 crore have been funded by the World Bank. The projects include Interception and Diversion (I&D) works and Sewage Treatment Plants (STPs) at Howrah with a capacity of 65 MLD and a sewage network of 3.3 km; I&D works and STPs at Bally with capacity of 62 MLD and a sewage network of 11.3 km, and I&D works and STPs at Kamarhati & Baranagar with a capacity of 60 MLD and a sewage network of 8.15 Km.

PM at Krishnanagar, West Bengal

At Krishnanagar, Prime Minister will inaugurate, dedicate to nation and lay the foundation stone of several development projects related to sectors like power, rail and road.

Strengthening the power sector in the country, Prime Minister will lay the foundation stone of Raghunathpur Thermal Power Station Phase II (2x660 MW) located at Raghunathpur in Purulia district. This coal based thermal power project of the Damodar Valley Corporation employs highly-efficient super critical technology. The new plant will be a step towards strengthening the energy security of the country.

Prime Minister will inaugurate the Flue gas desulfurization (FGD) system of Unit 7 & 8 of Mejia Thermal Power Station. Developed at a cost of about Rs 650 crore, the FGD system will remove sulphur dioxide from flue gases and produce clean flue gas and forming gypsum, which can be used in cement industry.

Prime Minister will also inaugurate the road project for four laning of Farakka-Raiganj Section of NH-12 (100 Km). Developed at a cost of about Rs 1986 crore, the project will reduce traffic congestion, improve connectivity and contribute to socio economic development of North Bengal and Northeast region.

Prime Minister will dedicate to the nation four rail projects worth more than Rs 940 crore in West Bengal including project for doubling of Damodar - Mohishila rail line; third line between Rampurhat and Murarai; doubling of Bazarsau - Azimganj rail line; and New line connecting Azimganj – Murshidabad. These projects will improve rail connectivity, facilitate freight movement and contribute to economic and industrial growth in the region.

PM at Aurangabad, Bihar

At Aurangabad, Prime Minister will inaugurate, dedicate and lay the foundation stone of multiple development projects worth more than Rs 21,400 crore.

Strengthening the National Highways network in the state, Prime Minister will inaugurate and lay the foundation stone for several National Highway projects worth more than Rs 18,100 crores. The projects that will be inaugurated includes a 63.4 km long two- lane with paved shoulder Jaynagar-Narahia section of NH-227; section of six lane Patna ring road from Kanhauli to Ramnagar on NH-131G; a 3.2 km long second flyover parallel to existing flyover in Kishanganj town; four laning of 47 km long Bakhtiyarpur-Rajauli; and four laning of 55 km long Arra - Parariya section of NH–319.

Prime Minister will lay the foundation stone for six National Highway projects including the construction of 55 km long four lane access controlled Greenfield National Highway from Amas to village Shivrampur; 54 km long four lane access controlled Greenfield National Highway from Shivrampur to Ramnagar; 47 km long four lane access controlled greenfield National Highway from village Kalyanpur to village Balbhadarpur; 42 km long four-lane access controlled greenfield National Highway from Balbhadarpur to Bela Nawada; 25 km long four lane elevated corridor from Danapur – Bihta Section; and upgradation of existing two lane to four lane carriageway of Bihta - Koilwar section. The road projects will improve connectivity, reduce travel time, boost tourism and lead to socio economic development of the region.

Prime Minister will also lay the foundation stone of the six lane bridge across River Ganga that will be developed as a part of Patna Ring Road. This bridge will be one of the longest river bridges in the country. This project will decongest traffic through Patna city and provide faster and better connectivity between North and South parts of Bihar, promoting socio-economic growth of the entire region.

Prime Minister will also inaugurate twelve projects under Namami Gange in Bihar that have been developed at a cost of about Rs 2,190 crore. The projects include Sewage Treatment Plant at Saidpur & Pahari; Sewerage Network for Saidpur, Beur, Pahari Zone IVA; Sewerage system with Sewer network at Karmalichak; Sewerage scheme at Pahari Zone V; and Interception, Diversion & Sewage Treatment Plant at Barh, Chhapra, Naugachia, Sultanganj and Sonepur town. These projects ensure wastewater treatment before it is released into the river Ganga at several places, boosting cleanliness of the river and benefiting the people of the region.

Prime Minister will lay the foundation stone of Unity Mall in Patna. To be constructed at a cost of more than Rs 200 crore, the project is envisioned as a state-of-the-art facility, encompassing international design practices, technology, comfort, and aesthetics. The mall will provide dedicated spaces to states, union territories, and districts, enabling them to showcase their unique products and craftsmanship. There will be 36 large stalls for States/ UTs and 38 small stalls for each district of Bihar. Unity mall will promote local manufacturing and promotion of One District One Products, Geographical Indicators (GI) products and handicraft products of Bihar and India. The project will have a significant socio-economic benefit in terms of employment generation, infrastructure development and exports from the state.

Prime Minister will also dedicate to the nation three railway projects in Bihar including the project for doubling of Patliputra to Pahleza railway line; 26 km long new rail line between Bandhua – Paimar; and a MEMU Shed in Gaya. Prime Minister will also lay the foundation stone of the Ara Bye Pass rail line. The rail projects will lead to better rail connectivity, improve line capacity and mobility of trains and boost industrial development in the region.

PM at Begusarai, Bihar

The public function in Begusarai will witness a significant boost to the energy sector in the country as the Prime Minister will inaugurate, dedicate to the nation, and lay the foundation stone for multiple oil and gas projects worth about Rs 1.48 lakh crore. The projects are spread across the country in various states like Bihar, Haryana, Andhra Pradesh, Maharashtra, Punjab and Karnataka along with KG Basin.

Prime Minister will dedicate ‘First Oil’ from KG Basin to the nation and will flag off the first crude oil tanker from the ONGC Krishna Godavari deepwater project. The extraction of ‘First Oil’ from KG Basin marks a historic achievement in India's energy sector, promising to significantly reduce our dependence on energy imports. The project also heralds a new era in India's energy sector, promising to bolster energy security and foster economic resilience.

The oil and gas sector projects worth about Rs 14,000 crore will be taken up in Bihar. This includes foundation stone laying of the expansion of the Barauni Refinery with project cost of more than Rs 11,400 crore and inauguration of projects like Grid Infrastructure at Barauni Refinery; Paradip – Haldia – Durgapur LPG Pipeline's extension to Patna and Muzaffarpur, among others.

Other important oil and gas projects projects being taken up across the country include expansion of the Panipat Refinery & Petrochemical Complex in Haryana; 3G ethanol plant and Catalyst Plant at Panipat Refinery; Visakh Refinery Modernization Project (VRMP) in Andhra Pradesh; City Gas Distribution Network project, encompassing Fazilka, Ganganagar, and Hanumangarh districts of Punjab; new POL Depot at Gulbarga Karnataka, Mumbai High North Redevelopment Phase -IV in Maharashtra, among others. Prime Minister will also lay the foundation stone of the Indian Institute of Petroleum and Energy (IIPE), Vishakhapatanam, Andhra Pradesh.

Prime Minister will inaugurate the Hindustan Urvarak & Rasayan Ltd (HURL) fertiliser plant in Barauni. Developed at more than Rs 9500 crore, the plant will provide affordable urea to farmers and lead to increase in their productivity and financial stability. This will be the fourth fertiliser plant to be revived in the country.

Prime Minister will also inaugurate and lay the foundation stone of several railway projects worth about Rs 3917 crore. These include the project for Raghopur – Forbesganj Gauge Conversion; doubling of Mukuria-Katihar-Kumedpur rail line; project for Barauni-Bachhwara 3rd and 4th line, Electrification of Katihar-Jogbani rail section, among others. These projects will make travel more accessible and lead to socio economic development of the region. Prime Minister will flag off four trains also including Danapur - Jogbani Express (via Darbhanga – Sakri); Jogbani- Saharsa Express; Sonpur-Vaishali Express; and Jogbani- Siliguri Express.

Prime Minister will dedicate to nation ‘Bharat Pashudhan’ - a digital database for livestock animals in the country. Developed under the National Digital Livestock Mission (NDLM), ‘Bharat Pashudhan’ utilises a unique 12-digit Tag ID allocated to each livestock animal. Under the project, out of estimated 30.5 crore bovines, about 29.6 crore have already been tagged and their details are available in the database. ‘Bharat Pashudhan’ will empower the farmers by providing the traceability system for the bovines and also help in disease monitoring and control.

Prime Minister will also launch ‘1962 Farmers App’, an app which records all data and information present under the ‘Bharat Pashudhan’ database, which can be utilised by the farmers.