With a massive population of more than a billion, India has a greater demand for the real estate housing. This is an area were the scope of the real estate lies. As the population increases the demand for housing increases; hence the demand for every aspect related to housing increases.
There is no doubt that real estate industry is one of the fastest growing and the most flourishing industry in India. As the amount of the middle class has been increasing in millions year by year the space of accommodating them is also a question. Rather than accommodating them, are they accommodated in a way which they are paid? Real estate industry is one of the area were developers viewed it as a platform to multiple their money. Shifting of people from villages to cities in large numbers gave them a boost.
For many years in the past we have seen instances where there used to be a tough battle between the builder and the buyer. In many cases there will be a roller coaster ride for the buyer because of the builder. The projects might be delayed indefinitely thus causing havoc to the buyer. These mainly affected the middle-class buyers. Quality of the materials used is another problem. In many cases the builder may not use the standard of materials as he had promised through advertisements. In all these cases the one who trapped is the buyer.
Real Estate (Regulation and Development) Act, 2016 which passed in parliament comes as a major relief to all innocent real estate builders and buyers throughout the country. The bill had made it mandatory for all commercial and residential real estate projects where the land is over 500 square meters, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for a project. This had created a responsible mindset for all the builders. RERA is an authority who is closely monitoring the real estate developments inside the country. For buildings to be registered with RERA it will approve or reject the application within 30 days of submission. There is a tight rule that is included in this bill where whosoever fails to register with RERA will be fined 10% of the project cost or face an imprisonment of up to 3 years. It also regulates the unaccounted money that is being pumped into this sector. The act clearly says that 70% of the money that the buyer is paying shall be through cheques or bank account. The black money that is flowing under this sector can be eliminated up to an extent through this move.
Building quality is one of the major thing that a buyer demands from the builder. Computer edited sceneries on the background of the project, like scenic landscapes or lake, etc., are to be avoided in advertisements. This happens too in the luxury villas in Bangalore, Mumbai, etc. were they overhype the projects. Also everything portrayed in the advertisement shall be there in the project. There is a real estate tribunal that is set up to hear the complaints regarding to this sector. The tribunal shall adjudicate the case within 60 days of hearing, so that both the builder and buyer get the delivery of justice in a fast manner.
The bill does not the builders of India negatively. It will only increase the healthy competition among the builders, so that the customers can choose from the right and the wrong builder. The tough real estate regulation will create a good market in the country which will in turn result into overall development of the nation. The trust of the builders among the buyers will increase, the real estate lobbying will decrease the pumping of the black money and many of the malpractices in this sector can be brought to an end. The healthy growth of the real estate will result in every parameter of the growth of the country because the real estate is one of the major pillars of the economy.