High hopes as realty Bill nears reality

NEW DELHI: The Real Estate Bill can bring greater credibility to the sector through more transparency as well as accountability and could encourage flow of FDI funds into the market, a Nomura report says. "The Bill is yet to be passed in the Lower House, though that should be easier, as the government has an absolute majority in the Lower House," Nomura added. "Mandatory disclosures and registration may reduce black money transactions in this sector; and greater credibility of the real-estate sector (through greater transparency and accountability) could encourage flow of FDI funds into the sector," Nomura said in a research note. Project delays are a common characteristic of the real estate market.Several well-known developers in the country have seen their projects delayed for as long as seven years. If that is not enough, there are several cases where developers imposed random charges on the customers at the time of offering possession under different heads, The Real Estate (Regulation and Development) Bill, 2015 that was passed by Rajya Sabha will look to address some of the concerns, if the proposals within the Bill see strict implementation at the ground-level. The ambiguity surrounding who a homebuyer should approach in case of any dispute with the developer or in case of a delay in delivery is set to end now with the approval of the Bill in the Upper House of Parliament.

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