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Revisiting the Real Estate Bill, 2013
The central government has introduced the Real Estate (Regulation and Development) Bill, 2013, which sets up a regulatory authority to protect consumers as well as promote the real estate sector. This article compares various provisions of the bill with a 2011 draft as well as a bill introduced in the Maharashtra legislature in 2012. It also provides a brief overview of the regulatory mechanisms in different countries for governing the real estate industry. It fi nds that the bill has serious defi ciencies and will do little to help either customers or builders. It will only add one more layer of bureaucracy to an already tedious real estate development process.
The authors thank Ajit Karnik for a fruitful discussion and gratefully acknowledge the contributions of P A Ananthanarayanan, Xerxes Desai, Vijay Kelkar, Deepak Parekh, Abhay Pethe, V K Phatak, and I S Sohel who commented on this article.
1 Introduction
The real estate industry in India is in dire need of effective regulation. The industry has witnessed significant growth over the years and attracted heavy investments. But homebuyers throughout the country face serious problems with delays in completion of projects, fraudulent developers, and illegal construction. Most countries have recognised the need to regulate this industry, and have introduced laws and established authorities to protect consumers and promote the industry.
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