The Real Estate Bill has been passed by Lok Sabha as well. The Bill will now be sent to the President for his approval after which it will become a law. It has been held by the real estate developers lobby that this bill is pitted against them in a major way and is harsher against them. There are many provisions which make the developers accountable for their projects. The bill touches upon multiple contentious issues and imposes penalties and prescribes jail terms even as it seeks to set up State level regulatory bodies.
However, it is not only the builders who will land in jail, but the buyers too can get sentenced for 1 year jail term in case of failure to obey the Real Estate Regulatory Authority or Tribunal ruling. This ruling has also been extended to the real estate agents. This provision has been included to ensure that the buyers do not use the legal means to file complaints against builders. This provision has been criticized by buyers who argue that this will deter many bona fide buyers to lodge complaints against the builders. However, the experts are of the opinion that buyers do not have to worry since they will approach Tribunal or REAR only when they have some genuine grievance against the builder.
Another important part of the Bill pertains to insurance of land title. This is for the first time that this provision has been introduced to secure the buyers as well as builders against defective land titles.