Tag Archives: Real Estate Bill

Haryana govt notifies Development and Regulation Act

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Real Estate Bill, Parliament of India, Government of India, Urban Development MinistryTrack2Realty-Agencies: Haryana government has notified the Haryana Development and Regulation of Urban Areas (Amendment) Act, 2013 to regulate land use in the state.

The move is aimed at regulated use of land in order to prevent ill-planned and haphazard urbanisation in or around towns and for the development of infrastructure projects in the state, an official spokesman said.

The Haryana Infrastructure Development Board has been constituted under the Chairmanship of Chief Minister Bhupinder Singh Hooda, he said adding, an executive committee under the chairmanship of Haryana Chief Secretary will also be constituted under the Board to aid and assist it in discharging its functions.

The Board will be the apex body for overall planning and development of infrastructure projects, the spokesman said.

The Board will act as a nodal agency to co-ordinate all efforts of the government regarding development and implementation of infrastructure projects involving private participation and funding from sources other than those provided in the state budget and will also identify infrastructure projects for private participation.

It will promote competitiveness and progressively involve private participation while ensuring fair deal to end-users, identify and also promote technology initiatives in urban development and infrastructure development sector for improving efficiency in the system.

Clearwater Capital to invest Rs 100 crore in Ramprastha township in Gurgaon

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Real Estate Bill, Parliament of India, Government of India, Urban Development MinistryTrack2Realty-Agencies: Ramprastha Group has said, Nov 25, that US-based investment firm Clearwater Capital Partners will infuse Rs 100 crore in its 600-acre township in Gurgaon being developed at a cost of about Rs 4,000 crore.

The company has so far launched six group housing projects comprising over 3,000 flats and plans to offer plots in 250 acre next year in its integrated township ‘Ramprastha City’ located near Dwarka Expressway.

“Clearwater Capital has decided to invest about Rs 100 crore in our township in Dwarka,” Ramprastha Chief Executive Officer Nikhil Jain told PTI.

The investment would be in the form of debt, he added. Clearwater Capital Partners is an investment firm with a 10-year track record of investing in credit and special situations in Asia.

Jain said the company had earlier raised about Rs 150 crore from India Property Fund in the two group housing projects — Skyz and Rise — that are part of this township.

India Property Fund, a joint venture between Varnado of US and TCG of India, has picked up 49 per cent stake in these two group housing projects.

On the total investment in the townships, Jain said the project cost is about Rs 4,000 crore and this would be largely funded through internal accruals and advances against sales.

Besides group housing and plots, the township would have commercial space and institutional area.

Ramprashtha Group is currently developing over 10 million sq ft area and has land bank for development potential of over 140 million sq ft.

“We have a huge land bank in Gurgaon of about 1,500 acres and we have land in Ghaziabad also,” Jain said.

Asked about revenue, he said the group turnover is about Rs 600 crore.

Realty bill ready to be placed in Parliament after Cabinet approval

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By: Ravi Sinha

Track2Realty Exclusive

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Real Estate Bill, Parliament of India, Government of India, Urban Development MinistryThe much awaited and largely discussed Real Estate (Regulation & Redevelopment) Bill, pending since 2009, is finally been ready and the Government plans to introduce it in the winter session of Parliament after getting Cabinet approval.

The Bill makes it mandatory for developers to register themselves with a real estate regulatory authority to be set up in each state. Developers must also submit project details— approved layout plan, timeline, cost, sale agreement—to the regulator before launching projects. This information will be displayed on the regulator’s website. Only those developers who fulfill this clause will be permitted to advertise their projects.

The Bill also ensures the booking amount is not diverted. The developer will have to create an escrow fund, where a percentage of the money collected from the buyer will be parked, to be used for the specified project.

The Bill comes with stiff penal provisions for errant developers. Defaulting on contract or deviation from the layout plan will lead to the developer being penalised 10% of the project cost or jailed for a maximum of three years. In extreme cases, a developer could even lose his licence.

Speaking from the buyers perspective, Sachin Sandhir, South Asia Managing Director of RICS says, “I think the issue we never really bring up in any discussion, the biggest one facing the industry is not from the developer’s perspective but from the investor’s perspective and delivery or the lack of it. That impacts everything—confidence in the industry and the long term aspirations of being given an industry status. Once we get the industry status, we will have easier access to funds. But all these things are interlinked in some shape or the other. For me the biggest issue is delivery which fuels shortage.”

The draft proposes a two-tier grievance redressal system—the state regulator and an appellate tribunal at the Centre. At present, the only option open to buyers is to move the civil courts, which is a time-consuming process.

“I wish such a regulator would have been in place when we were knocking every possible door to get our grievances addressed,” said Sweta Sinha, a home buyer at Noida Extension. She is one of thousands of buyers caught in the land acquisition stir between developers, authorities and farmers.

However, some developers question the one-sided discipline imposed on the sector. Sunil Dahiya, Sr Vice President of NAREDCO and MD of Vigneshwara Developers says, “Today, there is no act in the Indian law that I can recover my payment from the consumer. There are hundreds of laws in the hands of the consumers that are used to penalize the developer. So the regulation has to come from both sides.”

However, the Bill does have some safeguards for developers. Buyers who default on payments will be fined. According to the sources the Bill is balanced and has clearly defined obligations for both the promoter and the buyer.

Confederation of Real Estate Developers’ Association of India (CREDAI) President Lalit Kumar Jain reacted cautiously, “The bill should protect buyers’ interests but at the same time have safeguards for developers. Otherwise, it would be counter-productive.”

Real estate draft Bill revised to make it a central legislation

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By: Ravi Sinha

Track2Realty Exclusive

Real Estate Bill, Kerala real estate, kerala property, kochi apartments, Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyThe contour of the Real Estate Draft Bill has been changed to make it a central legislation, a shift from it being a state matter earlier. The focus of the revised Bill is now on consumer protection and contractual obligations of developers. Track2Realty has learnt that the Ministry of Housing and Urban Poverty Alleviation has sought the approval of the Ministry of Law on the proposed legislation.

The law ministry is expected to give its opinion by the end of this month. The concept of a real estate Bill has been around in the government for almost 10 years now, and a draft Bill has been in the making for well over two years.

Although the Consumer Act and penal provisions already exist for grievance redressal, these come into the picture only after commitment is made by developers to property buyers, said a senior official in the housing ministry requesting anonymity.

However, if the Real Estate Draft Bill is approved by the law ministry and thereafter clears the Cabinet and Parliament scrutiny, developers will need to make public disclosures related to land title, project completion date and other relevant scheme details on the website of the proposed regulatory authority, he added.

The disclosures must be made before launching any project, so that consumers are not taken for a ride at a later stage. Also, developers have to register themselves with the regulatory authority.

Following vetting by the law ministry, a draft Cabinet note on the subject will be circulated amongst ministries of finance, home, urban development, consumer affairs and the Planning Commission. The next step will be seeking a Cabinet clearance, after which the draft Bill will be introduced in Parliament. Housing Ministry officials estimate that the draft Bill will be tabled in Parliament later this year.

Certain clauses have been deleted from the original draft real estate Bill to move towards a central legislation. State-centric issues such as building bye-laws and municipalities had been removed from the new draft, an official confirmed. The thrust now is on consumer protection against fraud, timely completion of projects by developers, and contractual obligations of the builder/developer.

The objective of the proposed legislation is to establish a regulatory authority to regulate, control and promote planned and healthy development and construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties, and to host and maintain a website containing all project details.

As per the draft, the idea is to protect the public interest in relation to the conduct and integrity of promoters and other persons engaged in the development of such colonies. Also, it would facilitate the smooth and speedy construction and maintenance of such colonies, residential buildings, apartments and properties.

As for dispute resolution, the regulatory authority will appoint an officer for amicable settlement of disputes between the promoter and the allottee within two months.